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What was the total bill? Machine work is always expensive and it's hard to get an up front estimate when there is a damaged motor involved. The fact you gave them a full motor for disassembly, inspection and assembly contributed a big part. If they're a reputable shop and do good (sounds like they did everything they should have) work, you should be good. Just break in the motor per their recommendations (they should give you a spec sheet) and use what oil they tell you. I do my own tear downs and installs so that has helped me save $$$ in the past.
As for the lifter, my guess is the lifter turned in the lifter tray. I installed new heads a few years back and I found a couple of lifters that were loose and had play inside the tray. I was surprised considering the motor only have 17K miles on it at the time. I replaced the lifters and lifter trays and no issues so far.
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