Well first I'll state my opinion and that would be to rebuild with a MHG. My rebuild cost about $2500 but I removed and installed the motor myself. I had the head and block rebuilt and used a Titan MS HG. If it's done
right you have that piece of mind and can later turn up the boost which is what you're going to want to do.
I too was once like you saying I don't want big HP but let me tell ya, boost is addicting and you are going to want more! I'm running stock boost right now but will turn it up some when the funds allow.
Now with that being said, there are plenty of people around that have rebuilt with an OEM gasket running 10-12 psi with no problems because they did it
right. Some stock 7Ms have lasted a long time on their stock head gaskets, some have not, so it's basically a crapshoot. If you go OEM, have the rebuild done right and don't turn up the boost too much and hopefully you'll be fine, but if not, don't whine about to us, we told you so. :icon_razz