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Unfortunately, he has tried most all of your suggestions with no success. So now we go back to the question of cylinder heads or swap.
So my question now is what engine could I drop in my truck without having to do a new transmission and transfer case and so on
You really cant drop in another engine other than a mod motor and have it bolt to that trans. If it were mine I would pull the engine, change the pistons to something with a little less dish, and pick up some torquer cams for the replacement heads.
A cheaper option would be grab a 97-98 engine and swap on some rebuilt pi heads and enjoy the extra power.
Anything with much more power than a stock 5.4 is going to need a new transmission (Supercrew = 4R70W), or at least a beefed up stock one.
I know ibd did a 4R70W to 4R100 swap on a 4x4 (it is a sticky here).
If you truly can't get the bolt out and the manifold leaks, just get a new head.
You dont even need anything protruding. The heads are aluminum, even if the stud broke of 1/4" into the head, you call fill it with a mig and then once the puddle is protruding, put a nut on it and weld away. Simple fix.
Show us pics. They should be able to drill out the stud. I have been there and done that. It sucks but most reputable shops should be able to drill, extract stud and helicoil. If yours cant bring the truck elsewhere. It sounds like they may just want to get labor for new cyl heads or engine swap.
Here was my situation. This bugger would not come off. Torched it, welded a nut to it. We even applied enough tourqe that it twisted the metal stud...and it sheared off flush to the head. Still my shop guys were able to get me fixed up by drilling it out.
