this is going to get expensive with a new head and all of this otherstuff.....you need to decide if it is worth the cost. How much did you spend on this bike if you don't mind me asking? I hate it when sellers sell crap like this....
It doesn't appear to need a new head. He's going to fix up the porting the best he can...otherwise it's in good shape.
I bought the bike in December '08 for $4500. On simple inspection, the bike looked brand new. Once I got it home and started tearing it down I noticed that it had been prettied up for sale...new bodywork and painted engine side-covers. I was disappointed, but learned a lesson.
The good news is that it ran very well all season...ran it hard at the supermoto and roadracing tracks. So, basically, what we have now is a bike that has been run hard for two seasons and needs to be freshened up. The only real issue is with the crappy porting job.