When I rebuilt my 1600 all I bought was new filters ($40) new rings ($75ish) a full gasket set ($170ish) new oil ($25) and some valve grind paste ($12?). Checked my bearings with that blue engineering gel stuff but they looked mint, they would of been about $80 to replace though. I think thats all... so thats just over $300. Did all the work myself, borrowed a cylnder honing tool off a friendly engine reconditioner, otherwise I had all the right tools. It can be done quite cheaply if all you want to do is a straight forward rebuild. Once you start modifing things the price will rise.
Also is your 1600 out of a escort? If its a cortina one you might have clearance issues with the sump.