here is a list of parts that you SHOULD replace when doing this job, if you dont you may have a problem with leaks and other stuff.
Valve cover gaskets, new oil and oil filter, all new cylinder head bolts, both cylinder head gaskets, intake manifold gaskets, exhaust manifold gaskets, spark plugs, timming belt tensioner, timming belt, change the timming belt tensioner bolts and the timing belt idler bolts (trust me, you dont want them to brake after all the work you do

), thermostat, water pump.
this will make sure you wont have any vacuum or oil leaks, it will also bring all your maintaince up to date so you shouldnt have to tear into the engine for about 100,000 KM.
just a recomendation.
also if you buy a ZE you should do all this work (except for the head gaskets) anyway to make sure you wont have any problem in the future.
1) get lots of small boxes and ziplock bags.
2) put the nuts and bolts in them and label them as you take it appart so you dont lose anything and you will know where they all go.
eg: all the valve cover bolts in 1 bag and lable it "Valve cover bolts"..ect
you will need a torque wrench to torque down the clinder head bolts. Its actually a large rachet that makes a click when it reaches a certian torque.
You should send the heads to be checked for cracks and for warpage, its always a good Idea to get the heads machined, this will make sure that the head will be perfectly flat.
when I used to send heads out to my local machine shop, they would clean them in a steam cleaning tank, then (for aluminum heads) the put the heads in a fluid and use compressed air to check for any leaks. If there is a crack the air will make bubbles in the fluid.
they would also check for EXCESSIVE warpage of the mating surface, if they are too warped you CANT machine the warpage out and they wont seal properly.
If there are no leaks, you dont need to have the heads rebuilt, just have the mateing surface machined flat.
on the block, use some fine sand paper (800 ro 1000 grit) to lightly clean the mating surface if it needs any cleaning, the block is aluminum and will get damaged if you use to harsh a sand paper, the best thing to use is a soft plastic abrasive disc from 3M that is ment for this type of job, but you need a spical adaptor to use it in your drill or die grinder.
just dont sand in 1 spot too much or the surface will be uneven and wont seal properly.
since the headgaskest are metal, you shouldnt need to clean the block too much, try just using some brake cleaner and some steel wool(the grit you want to use is #00 or #000)
Ask Mr.Spanky he has taken appart a few K8 engines, he can tell you what the block looks like and if they would need any excessive cleaning or sanding.
you can find some of his posts in the F.I. or toronto sections if you need is info.
I dont want to discourage you at all, I know some people have just pulled the heads and slaped on a set of head gaskets, reused the intake and valve cover gaskets and it all worked out ok, but I have also seen the problems with not doing it properly. It would really suck for you to do all this work and then still have a compression leak or have a misterious "I did my own head gaskest and now it doesnt run right" problem.
when I used to sell head gasket jobs it was beacuse of 1 of a coupple things.
1)over heating due to comperssion gasses getting into the cooling system and causing air bubbles.
2)coolant getting into a cylinder causing a missfire, dis-colouration and deposits on the spark plug.
3)coolant getting into the oiling system, it will cause the oil level to rise and the oil will look like a chocolate milkshake.
4)oil getting into the cooling system, oil in the overflow bottle, looks like chocolate milk shake.
then we tell the customer its a head or gasket problem, we have to pull the heads off, send them out and get them checked to see if they are ok to reuse.
we include all the gaskets, checking, re-surfacing of the heads...ect in the final price.
Its quite a bit of work and needs to be done properly, thats why it costs so much.
<small>[ March 20, 2004, 09:32 PM: Message edited by: curtklze ]</small>