~$700.
What I paid others to do: align bore, rods machined, reground lifters, machine crank, cam check.
What I bought: New rings, new cam and crank bearings, new gasket kit, new fasteners, new valves.
What I reused: Case, P&B, heads, valve train, springs, crank, cam, oil pump
What I did: removed and disassembled, cleaned, honed barrels, cleaned block again, blueprinted oil pump, reassembled.
Ran it in on the drive from Melbourne to Valla two years ago. Still going strong (touch wood).
As Flipflop says, it's easy to do yourself if you have a garage/shed and some basic tools. For the cost difference between DIY and paying somebody else to do it, you can buy some tools and/or more new parts.
Get this book.
http://www.amazon.com/Rebuild-Volkswagen-air-Cooled-Engine-models/dp/0895862255/ref=sr_1_1?ie=UTF8&s=books&qid=1209350922&sr=8-1
Hope this helps.
Ain't nothin' like the wind in your hair.