[dtw]

A few thoughts:
-If the 2.2S is for the '72T, then I am guessing originality/numbers matching is not an issue. That's good, b/c that case is probably going to measure out to be trashed. Proper repair will involve resizing the case back to standard - $1k+.
-Do not replace just one of the steel chain sprockets- replace them both. Only $35 more, and you won't risk weird wear patterns from one side to the other. Be sure to replace the cam sprockets too.
-$250 for a used oil pump is out of line. I've been picking them up for ~$75 in good used condition. This is the later 4-rib style which is good for the oil bypass mod. His other prices sound pretty good though.
-As far as using 2.2 components on a 70.4mm crank - the main benefit is simply increased compression. There is no effect on displacement. Torque, HP, and fun factor overall are increased with this mod. Due to the number of 2.4s and 2.7s produced, it is easy to find good used 70.4mm cranks. Go for it.