Okay folks, the head is off, and I have a plan. It has a burned exhaust valve in the number 2 cylinder, and the rings on that piston are galled, hence the low compression. This is pretty much what I expected to find. I did NOT expect to find a plastic thermostat housing!

I am getting an engine rebuild kit from falconglobal for about $330. I can get a new water pump for about $25, a Topline.
I am getting a reman head from Odessa, with cams and head bolts.
I have not pulled the trigger on either of these deals yet.

What can you folks tell me about topline? Any good? I cannot even GET an oil pump through my local supply chains, and a reman water pump is $57 exchange. So I am thinking that if Topline is any good, this is the way to go.

I will not say there is no one who makes a reman motor for the Aveo, but I cannot find one through Advance, Auto Zone, Oreilly, or NAPA. NAPA is a "sort of: They contacted both Jasper and Grooms, and neither of them remans this motor. The folks at Grooms have an assoc that remans these, $2700 with a 3yr/100k warranty, but I am not real excited about going to a 3rd, or 4th party source to get it.

I know my mechanic has built some good motors, both import and domestic, so I am going with him.

Does anyone have a better source for the parts?
How about non-plastic thermostat housing and water hose ports?

I appreciate the information I have gained here. Normally, I would not put this kind of money into a 7 year old car, BUT... she loves her car, and the rest of it is pristine. She is not likely to get rid of it until it cannot be feasibly repaired any more. I figure for the cost of the rebuild, I can not buy her another car as good as this one will be again. It would be something unknown, with his mileage.