The verdict is in regarding the shop: Using another AAA tow to get it pulled back to my house.
Owner of the shop checked with all the local machine shops he uses and out of 5, only 2 would even agree to look at the heads. Total cost for valve job from where it sits currently, to running and back in my hands is $2,255. With a complete engine overhaul while he's already in there, $5,775.
He told me book labor was $1,900 on the valve job (removal, re-installation, timing belt, etc.), leaving $355 for machine shop and any parts needed. Granted, book and real life are different, but it's a good benchmark.
He hasn't even removed the heads since he wanted to find a shop that can do the job before going to that trouble, so I don't know what the damage looks like.
FYI this is a very reputable shop recommended by my normal mechanic who is completely swamped right now. I already balked at the price before a hard quote, so if he's inflating the estimate it's probably to get the Montero out of his shop, not to screw me. No negotiation offered on the phone either, so I'm thinking he either wants to free up that bay ASAP, or that's really the price and that's all he can do.
I've been looking at rebuilt heads, like HeadsOnly.com and others, and they seem to run around $800/pair with shipping. If I were to find damage to the head, and have no local shop to do the work, then that would be my best bet. If I find damage to the block, well, junkyard block? Complete engines for these are quite expensive, with used running around $2500 with little to no warranty, and rebuilt running around $3500+shipping.
I'm faced with a hard choice. At this point, here's what I see as my options:
Pay through the nose (2x KBB value) for the shop to fix what's there. <- No
A complete engine swap with a used or rebuilt. <- Probably not
Bring it home and attempt to fix it myself. <- Possible.
Cut my losses and sell it. <- Possible.
Any input? I feel like throwing up. Five months of use, and here we are.