Wanted to give ya'll and update on this K321 rebuild. And thank twoton and jmech on advice and what to look out for.
First, I ordered and got the cam shims in, and practiced getting the endplay into spec (now disassembled, but wanted to make sure I could spec it out before I went further). Was able to get it close to .007, should be good.
Second, the governor was not missing any teeth, but it was wobbly on its axle shaft (more than just a little), so I ordered a kohler oem.
Third, I took my block to the machine shop to have it checked and gave him the spec sheet. He called and said to bring him a .020 over piston over and he will make the bore round again. I ordered the rebuild kit from the place twoton suggested including the valve set. Should have the kit in maybe by friday and take the piston to the machine shop.
One more question, I read where the crank bearings next to never go bad. Is this mostly true?
Like I mentioned earlier this is my first K series rebuild, and I appreciate all the advice given so far (there may be more needed later

)
Thanks, TB