Finally got the truck back this afternoon. She runs great. Final bill was $3,400. Of that $1100 was for parts - head gaskets, 34 head bolts at $7 apiece, new waterpump (which was the most expensive part) and assorted hoses, serpentine belt, thermostat, gaskets, etc. Since this is a GM dealer all the parts were at list price. But if something goes bad, they cover the part and the labor to remove and reinstall. All in all, I got away reasonably cheaply considering a new long block would have added about $6400 more to that amount.
Before it could leave the dealer, the 80+ year-old owner had to test drive the truck. He has been running the dealership for the last 56 years and nothing leaves without him first approving the work.
In case anyone needs some diesel work done, here is a link to their place:
http://www.colonialmotorsofnj.com/Au...chburg-NJ.html