my machine shop guy said that he did not want to put the 194 valve seats in my heads because he might hit the water jackets.

can it be done

I need some input

 

It is very commonly done.

In fact, if the machinist only cuts just barely enough metal to get the job done and doesn't "hog out" the seats, they won't even go all the way through the induction-hardening; let alone all the way to water.

Get a racing machine shop to do it; not the corner parts store. Preferably whoever builds heads for the circle-track racers in your area THAT WIN. Somebody that build race motors for a living probably would be doing this every single day at least once.

 

I build these heads with 1.94x 1.60" valves all the time.
Here is a pic of a 416 head finished with 1.94x 1.60" Manley valves.
Find a new machinist.
If you really want to go with these heads do all the porting yourself first. Then take them in for the valve job. have the machinist cut the valve guide bosses for positive seals and shorten the guide boss height by .200" to allow for the new seal and exteneded net valve lift. The finished chamer volume will not be the same as with the stock valves. This head in the pic was 61cc after just a cleanup cut across the deck to ensure flatness.

 

F-bird, it's long past time you asked Santa for a new digital camera for christmas eh?