Decision time regarding cylinders

A while back I purchased an O-320 E2A in standard configuration (150 hp) with about 1600 hrs TT on it. It was taken out of a storm damaged cherokee by a friend of mine who owns an FBO. The engine was running great when taken out. I had planned on taking the engine to him this week to do the HP upgrade to 160, lap the valves, and peek at the internals before I hang it. he figured about $1500-$2000 for the work. I'm looking for opinions if it would be a better idea to simply buy all new cylinder assemblies and have a new top end for it. If so how hard would it be to install new cylinder assemblies by myself? Doesn't seem like it could be too tough. Any vendor recomendations?

I personally would not replace the cylinders unless it is indicated by other parameters. If everything looks good, I would just replace the pistons, rings, wrist pins; inspect and hone the cylinders, lap the valves.
If you have cracks, then by all means, replace.

These engines will easily go close to 3,000 hrs between majors if taken care of.

I had over 2800 hrs on my O-320 when I did a major and everything I took out met specs.

Thanks Mel. I'll likely do just that.