CNC Hone Retrofit

We have a Delapena CNC E3500 hone with an aging obsolete CNC control unit.  We are considering a cost effective retro fit to a system were replacement parts are readily available, and naturally I myself am leaning towards a LinuxCNC solution. Our company has briefly investigated approaching Hone specialists to undertake this task, and they have come back with ridiculous quote figures were I could buy a top of the range Aston Martin car !!

The system would require the control of only three servos with encoder feed back.
One to move the hone tool in the Z-Axis
One to control the expansion of the hone tool (X-Axis)
One as a servo driven spindle using AB-Z feed back

Brief explanation of operation:
The software would need to control the tool in very similar way to a CNC lathe with a screw cutting cycle, were by the tool approaches the work piece and performs up an down movements triggered from the Z-Phase, and during this operation the tool is expanded .
A custom GUI would have to be created to help program the system, but customising/adapting something like TK or Axis may work just as well.
If any one here could help out on a professional basis, or knows of a capable company that can assist then please reply.
We are based in the north of the UK, and are a large OEM supplier to the Automotive industry. This task would be time sensitive, so not a back of garden shed project.

Further details on the mechanical movments, and the relating control of these movements via the software (Eg CNC program syntax and structure) can be discussed.
It's actually quite a simple machine and can easily be compared to a lathe in the way it operates.
I hope someone out there can help ? It would be great to prove to people that LinuxCNC is the way to go, and how adaptable it is

This is the only area that requires the 'cleverness'. And we can chose how we do this.
Obviously a mechanical honing machine in its simplest form just moves up and down in straight lines, but we have the ability to control our movements via the cnc control.
The existing system is sinusoidal. It accelerates & decelerates at the change in each Z stroke direction, and currently we can control wether we want to allow a spring rotation to complete either at the top or the bottom of the bore, which allows us to control taper or bell mouthing. Again how we do this is up to us.
I think it applies its feed-out to the tool at the top of the bore, but I'm not sure.
If we could create a component with variables in there that covers many of these options, then we can use them by adding a value, or not by leaving at 0?

We have a product range of around 120 parts, but are grouped into types via bore size.
So there may be two dozen variations of one part that can be grouped.
Eg, we may have two dozen differant part numbers all made from the same casting, and all with the same bore of 018.16mm, but other external features may vary slightly to differentiate them.
Each time the hone is changed to a new product type, currently the existing program is caled up, and all the setting data and positions are stored in the program, so its literally a case of proving the initial bore size is correct, and pressing go.
Batches may vary from 40 to 1000 per part number
Manual setting features such as MPG's would be very usefull, including a spindle jog/on switch etc
Setting values into/via a GUI sounds like a good idea, providing we can save the settings under a program name/file, and then lock out certains elements only allowing for an adjustment of bore to accomodate wear, etc.