These engines are almost infinitely rebuildable, like a 350 Chevy. BUT - are labor intensive, so that's why the owner has to be the mechanic unless his name is Jay Leno. Exactly what kind of damage? If the crank's fragged, new stock cranks are available off of E-Bay, from Price Part, or Hitchcock's from $400 - $700. If the piston or con rod let go and trashed the cases, you are done unless you are willing to shell out maybe $2K - $4K to get back to where you were. If it's just the top end & barrel, new complete top ends (barrel/piston/rings) are about $500 - $600. A used head is $200 up, but even the valve seats are replaceable. Hitchcock's sell used rebuildable engines for roughly $1000 - $1200 USD plus shipping. Unless YOU have personally rebuilt the engine, it's a crap shoot; "30 Feet or 30 Seconds" is the general warrantee. MUCH depends on the break in, just like back in 1940.
If this guy's on a budget, he's out of luck, it'd be good to sell now for a parts bike & cut his losses. Better to buy a complete running machine out of Texas or Virginia for $1,500 - $3,000, drive & retrieve it and hope for the best. Best to just fix it. There's no cheap way out.
Unless this guy is a "mechanically sympathetic" rider, the process is doomed anyway. These Olde-Skool machines do not like abuse. "55 all day, 65 for awhile, 80 one time" is the rule of thumb for a stock engine. The fact that it was ridden hard enough to frag it maybe tells the story, usually the machine will let you know when it's in distress. Highway speeds when this wee beastie was designed were maybe 45-55, and the Indian metallurgy doesn't up the ante any.
A Hitchcock's $1,700 press-together, roller conrod crank is a good place to start if you need to make 35+ HP and intend to run the freeway. The stroker 103mm makes a nice tractor motor, either 570cc or 612cc with the 87mm piston(535cc engine with 90mm stroke). The labor is the same, another $1500 basically doubles the HP. THEN you can easily run with traffic, but you'll be then in the market for the disc-brake front end, 5-speed transmission and rear shock upgrades, plus of course a nice $150 high-speed rated tyre at each end. This old saw describes it well: "Speed costs money - how fast can you afford to go?"