I dropped the motor off at AIMS this morning. Robert was really cool about looking into the motor and told me he'd be happy to take care of the labor for fixing it if I cover the cost for parts.
The real question will be whether or not the block is salvageable.
Personally, will all the problems I've had with the block, I'd prefer just putting in a brand new short-block and just dial back the boost for the lack of forged pistons. But on the other hand, if I can get the motor running again for just the cost of new bearings... that would save me oh about $1800.
Either way, +1 to AIMS for being willing to work with me on the situation.
As far as the damage, Robert says that usually if the motor was assembled with the incorrect size bearings or something like that, it either would have failed nearly immediately or even just failed to turn over... not 400 miles into the break-in. But there's still the chance that the clearances were just a touch too tight for the oil pressure I was running, which was MikeW's guess at the issue.
Most likely, according to Robert, the problem was debris contamination in the motor. But AIMS hot-tanked both the heads and the short-block, and I either replaced or cleaned out all the hoses and oil fittings, etc that went back on the motor... I really made an effort to ensure everything was as clean as possible, including throwing out my oil cooler with the knowledge that I would likely never be able to get it totally cleaned out. I can't really see how there would be enough debris in there to destroy the bottom end during break-in.
So, next week they should be able to get the motor apart and figure out what can be saved. If the pistons look like they're okay, and the crank can be reused, I'll probably just order up some Cosworth main and rod bearings and give the block another chance. If the crank is dead, or there's more damage than can be machined away, or if the heads are toast... then I should probably be looking for a 2.0L WRX long-block for cheap to get the car running and past smog and sell it that way to someone looking for a racecar.