If I were you, I'd probably bite the bullet and go for the full overhaul, as you are merely a couple of hundred hours off the point at which you will have to do this.
In addition, given you have one of the lower compression Lycomings, you might want to see if you can find if there is an STC which will allow you to convert it to run on MOGAS at the same time, which will prob 40 save you time and money in the future.
There is one engine shop in the S of England I wouldn't touch with a long $h1tty stick. The general modus operandii is to give a very competitive quote and then, when the engine is in pieces on the floor, announce that 'all the grommets and giblets are clapped out' and the price rises by 50%. This is also the same chap who offers a £500 'referral fee' to the maintenance outfits who look after the aircraft.
I hear good things about Nicholson McClaren Engineering, and Norvic and Isenbergs also have their afficionado's.
Personally, for an O-360, I wouldn't opt for an overhaul in the USA; when you consider the cost of the overhaul of the 360 (say £13,000) as against the cost of overhauling a 540 (say £25,000), the shipping (which is broadly speaking the same for an O-360 as it will for an IO-540) will form a much bigger percentage of the cost.
Having said that, there are people who say that the quality of the work done in the USA is better than that done in the UK. I have no personal point of reference on that, but would merely say that Texas or Oklahoma is a long way to go to deal with any warrantee or paperwork issues!
Last edited by wsmempson; 15th February 2011 at 12:20.
Reason: Dyslexia/illiteracy