Your 7.3 block is 40 over on the cylinders and the decks are 20 under? That's a little scarey. Are you sure you don't want to find a block that's never been machined and start with it? There is little room for error when it comes to piston to head/valve clearence on these IDI's, plus, 40 over on the bore puts cavitation (of one or more cylinders) into the coversation as well. Not trying to confuse the situation further, but another block is an option you should consider at least.
Just my two cents.
Heath