Update: Just got the 2001 Savage back two days ago from an independent mechanic who came highly recommended. Repairs were about $300 less than the quote from the dealership. Seems that there was some misdiagnosis by the dealership mechanics. Parts this time: cam and chain, rocker arm, and, of course gasket.  I sincerely hope that this will solve the issues.

As I visited the shop to check on the progress, it was interesting to see the other bikes that were brought to him that had previously been in dealership garages: partially disassembled and parts in boxes accpompanied by less than pleasant stories. Seems I am not the only one with, as a friend of mine says, "a war story."

Great freddie, anytime a mechanic goes into the top end it will be about $500 or more.  I think that mechanic is a keeper.

If the cam and rocker where worn out, most likely oil starvation.  A few ways for this to happen.  not enough oil in the case.  I've found mine down a qt. from time to time and after 40k miles no appreciable wear.  So you'd have to run it dry to get damage that way.  putting the oil pump drive gear on backwards and loosing all pressure when the gear disconnects from the clutch.  and obstructions in the oil path.  just as excessive rtv in the head cover.

If you get the parts back from the mechanic, take pictures and post.

Also, we can use the cam as a core to get it reprofiled.