Minimum head height

I dropped my E31 off at the machine shop. They called me today (I was having them vat my spare head before putting it on), and told me that the head is 4.227" high, 0.008" below the minimum height of 4.235", and that the previous mill job I had done (which took off 0.003") was done badly (their fly cutter picked up a repaired weld and grooved the head around #6).

Finally, they told me that the intake seats need replacement as well as the guides (all the seats but #6 are brass).

I'm not sure where to go from here. Is the head scrap? Is there a possibility of shimming the head (thicker gasket)? Will I have to shim the cam bearings when I get it back?