A bit more info just in case people are interested.
The old motor had the issue where a glowplug broke which resulted in 'catastrophic engine failure'. I think there may have been extended warranty to cover the engine (but not sure here)
They decided (not sure why, maybe because it was warranty??) that it would be best if they put the long block in including fuel system and new turbo.
The motor is brand new, not reman or rebuild. It does include the new better valves, the new better glowplugs, and a new gt37 turbo.
It is a brand new and direct from Ford. It has been delivered, I have seen it.
The original truck was purchased at, and had all service done at my local ford dealer. They have provided me with Oasis report, and screen shots from their system of all work orders done on truck. Nothing concerning in the list at all (excluding an engine blowing up of course).
They have been really good with all my questions. I got them down a tiny bit on price ($500) but they said since they went with the full motor they do not really have any wiggle room. Its the truck I have been waiting patiently for, and the price is right, so I think I will call them today and tell them its sold.
Thanks for all the help. I felt more informed after the posts here and the powerstroke forum I am a member of.