[Argess]

To add to the consensus, I'd have used block #1, leave the oiling system as drilled, massage it a bit as per common pratice, EXCEPT that the sleeves worry me. So if you want another vote, go with #2. I assume both are cross-bolted, so no difference there.

Magna-fluxing and no cracks found? I doubt the need for pressure testing then. Even a cracked block can sometimes pass a pressure test. But added piece of mind is a great thing. I pressure tested a block once. Put a pice of plywood with sealer in as head gaskets, made up to aluminum fittings for oveer the water pump holes, filled it with water and then hooked the air compressor to it. Waited an hour at about 45 psi, 3 times the normal cap relief pressure, but one can go higher.

And "Lucky you!", having two blocks to choose from!