Is there a machine shop in Tucson or Phoenix that knows how to machine Alusil cylinders on our 2.5 blocks??? Thanks Ray

I don't believe it is possible to machine the alusil cylinders. You can polish them a little but if you are talking about machining to the next size pistons you can't do this. There is a company in Minnesota or Wisconsin that can resurface the alusil cylinders but it is very expensive. A more cost effective option is to find a block on ebay (they can be pretty cheap (less than $200 with shipping) where the cylinders are in good shape.
Steve

Ray,
VERY few places know how to do it, but it can be done.
Motorworks in San Diego can do it, but that is a long way from Phoenix.
There is also supposed to be someone in the LA area, but I am not sure who.
Best of Luck with it.