Ok, I am playing the devil's advocate here, but....
In order to tell if the engine has damage, they must do one simple test, pour oil into the cylinders. If the oil stays put, there is a 99% chance the engine is fine. If there is a hole in the piston, the oil will run away instantly.
To test the valves all they have to do is remove the valve cover and look at the valve clearance. Not remove the head, just the cover!
They did neither of these things and that just SCREAMS Rip Off to me. Big time!
To 'fake' a dead engine, all they have to do is put the belts on slightly wrong either 'accidentally' or on purpose.
Sorry man, but I really think you are getting ripped off.
I would 'highly' recommend you get a second opinion before getting suckered for $2500.00.
My $0.02,
Mike
86/00 CJ7 Laredo, 33x9.5 BFG Muds, 'glass nose to tail in '00 88 Cherokee 235 BFG AT's Canadian Off Road Trips Photos: Non members can still view! Jan/06