Sandblasting the block won't be necessary. It will come back from the shop nice and clean with no paint on it. If the shop is like mine, it will have primer of some type on it also. You should ask before hand. I have told mine not to paint them anymore. (I want to use a different paint.) Yes, remove the bearings. Buy new valves, don't try to grind the old. They are cheap, and it's worth it. Don't tap the exhaust holes and mount a flange. It won't hold, nor will it seal. Use a pipe, just like it came from the factory and adapt your muffler to it. It's a much better way to go. If necessary, screw a pipe in and weld a flange to it. Don't try to just bolt a flange mount to the block.
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