Why in the world would you just run the Kawasaki into the ground if you had the use of a complete machine shop? You sure would of been better off then one of the B&S engines. Of course with all your equipment you shouldn't have any problems making the B&S fit. You are very lucky because very few people have that option. What was the 400 dollar B&S a new one?
I can still salvage the Kawasaki for future projects and eventually a rebuild. I didn't intentionally destroy it. Before I took it off the tractor to diassemble it, I wanted to try fresh oil because when it smoked, it smelt of gas, so I thought the oil might've been contaminated. Right as I started it up it started knocking and that was it for the engine. Oil was seeping out of where the head is bolted to the block.
My original plan was to take it apart and fix it anyways. Now it will give me something to do when I have some free time.
As we all know, Kawasaki parts are quite expensive. And around here parts for small engines are scarce which makes them more expensive. Even though I can machine a majority of parts, there are still parts I am going to need to order which would cost me around $450. Since the tractor was free, I'm really not too concerned of not getting it fixed right away. For all I know, with 1001 hrs it has on it, I could spend the $500 or so on the engine and then have the tranny fail. That's why I'm trying not to go deep into my wallet.
The $400 Briggs' is a buddy of mine that has one for sale; it is used but is very well taken care of with not too much use. I opted not to buy it now, because I'm going to tinker with the 6hp Briggs' I have. If it doesn't work, I'll buy his Briggs.
You can see that thread here on the engine swap. I havent had too much time to work on it; it's a slow work in process.:
http://www.lawnmowerforum.com/small-engine-mower-repair/6735-engine-swap.html