[mpgmike]

You did more homework than most would. I'm in favor of shops like that being severely penalized for perpetuating their fraud. Go get 'em tiger!

On your original question, engines with aluminum blocks rarely have iron girdles cast into them. The head bolt threads are pulling against aluminum threads in the block. I learned a bunch about this when a friend's Rav4 blew a head gasket, and again when another friend's Cadillac Northstar popped one.

If you're willing, I recommend as a preventative measure to pull the head, use thread inserts in the block (I forget which brand we used, but it was not Helicoil), and put it back together with a Toyota head gasket (not FelPro). I would do this even on a 68k engine, just because statistically it will go eventually otherwise. Easier with the engine out than installed. If you don't use the inserts, I wouldn't bother replacing the head gasket. It isn't the gasket that is the weak link.