67 evil eleanor

Last month I picked up our Fastback from a shop in a near by city where I had taken it for some aluminum fabrication and a tune. Most of the build was finished but I needed the aluminum tubes fabbed up and welded (I have no TIG welder). After about 9 months or so and it seemed that no progress was being made so I decided to pick it up. I figured that it could sit in my garage as well as sitting in front of his business. As soon as I unloaded the car and wenched it up on my lift, I started finding problems. The first thing I noticed was that the right charge tube was being rubbed by the tire. My first thought was maybe I could shorten it a little and then it would clear, so I removed the tube I found a nice surprise. The tube had metal shavings in it were it apparently was cut with a hack saw but never cleaned out. I know that this is not healthy for an engine and could cause some serious internal damage. As you would know the car had been started several times by this goof and he even stated that everyone that came in wanted to hear it. There is a plus to his incompetent work as he had the plug wires in the wrong firing order, and the engine would not rev ( it was wired for an HO or something) and hopefully this prevented some damage. My first question is.... what damage would these filings cause and what areas do I need to check? I have since cleaned all the tubes and removed the oil pan. I did notice there were a couple of pretty good scratches in the cylinder walls (was a new engine) and the pan had some very small metal pieces in it. Here is a photo of what I found in the tube.

The next thing I noticed was that one of the exhaust insulators was shorter than the other. I decided to remove it and make sure that the inner pipe had not moved up and caused a restriction. Another surprise awaited. The pipe had been run into the collector way too far and it seems its going to cause a restriction. The next question is will it restrict the exhaust and do I need to redo it?

There were several other goof ups and the list is long, but I will refrain from going into them now.