I came across the new website for Motormeister.  I was surprised to see that they now have a rebuilding program for the 986/996.  A turn key rebuilt 986 for $5995- with limited warranty, sounds not bad at all.  I know this SoCal based company has been rebuilding primarily early Porsche engines for decades now. 
http://www.motormeister.com/suz/911_engines/911_engines_5.htm