Engine rebuild/block repair questions.

Hello. I was wondering if anyone could answer a few questions for me? I recentley sheared a rod im my aluminum 417cid bowtie block race engine. The rod came down and smacked two holes in either side of the block. The holes are about the size of a quarter and it it below the compression. It is right where the pan meets the block. The rod also came back up and cracked the cylinder. It I belive cracked the cylinder sleeve and smacked the bottom of the piston.the rod left on the crankshaft freely.The rod was sheared at only 7000-7200 rpm's with a 7500chip(7200rpm's) wich it never hit that I heard. It had normal pressures and temps.Then with no warning the rod snapped near the bottom of itself but still on the main shaft part of the rod. They were oliver rods. The bearing did not spin, I can still turn the piece of the rod left on the crankshaft freely.
My questions for you are:
1. Can the block be saved/resleeved even though there is water in the pan? I belive due to the cylinder sleeve bing cracked.
2. If it can be saved what needs to be welded behing the sleeve to ensure that the engine will still run and cool well? (water jackets?)
3. How much does a repair to a block like this typically cost?
4. What would have most likley caused this rod failure?

Thank you so much for your time,
Travis  

Your block can be fixed. But here is the deal. You need to find a shop that has had experience with Alum blocks. The sleeve change is fairly simple and most good shops can handle it. But it will take a good shop with know how to fix the block at the bottom. Price? well that will depend on the shop but be ready to spent a little anyway!  
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