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engine rebuild suggestions for DR-Z 400?

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NomadRN's DR-Z 400's bike is at the Suzuki dealer in Reno. The engine is toast and they want $1400 USD to rebuild it. The are ordering the parts as we speak. I have a couple of questions for you all...

First, is this a usual price for the rebuild?

Second, and my suggestion, should he get the motor modded so he had more power?

Do any of you have any suggestions on engine mods for the bike? What machine work, bore, pistons, cam, that sort of thing.

Do any of you know a reputable shop in the Reno- Sacramento area where they could do some kick ass work with a project such as this?

Much appreciated.

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