I agree that the engine is toast, getting the block machined would not be worth the cost.  I'm hoping to find another engine, preferably a Kohler Command that I can just replace it with.  As for the bearing thing, I think a "thrust bearing" is what I think of as a traditional bearing with some type of rollers, I don't consider one piece of metal sitting on top of another piece of metal a bearing just because it is moveable, but that's why I'm no expert.  As for a thrust bearing in that Kohler Courage engine, I'd really have to argue that there is not one, at least not one associated with the crankshaft anyway.  Again though, I'm just a guy who owns a set of wrenches.  
Well, the part I was worried most about, the crankshaft and counterweight, are in excellent condition. I guess I'll take that engine completely apart and Ebay it, maybe absorb some of the cost of a replacement engine. Hoepfully the Command engine will be a suitable replacement and will swap out easily on that mower.
	
		
			
		
		
	
			
			Well, the part I was worried most about, the crankshaft and counterweight, are in excellent condition. I guess I'll take that engine completely apart and Ebay it, maybe absorb some of the cost of a replacement engine. Hoepfully the Command engine will be a suitable replacement and will swap out easily on that mower.