G'day Llew,
You can see why we reckoned that FleaBay engine was a good price! BTW, it is a real Honda I'd say, not a chonda - just not sold via the Honda dealer network, so no factory warranty.
A decent alternative these days is the Briggs 550 OHV 3.5hp, for around $270 [from Powermowers Adelaide, for example - FleaBay user 'hemicrank']. Cast iron bore, ball main bearings, and available with 5/8" PTO shaft.
BB has done at least one of these swaps, IIRC.