Blueprinting is the process of getting the parts tolerances as close to factory design and clearances at the optimum for the intended application. Balancing is getting the rotating asembly balanced with matched reciprocating weights.

A street engine will have closer clearances than a full race drag motor.

For VtecApprentice: I would gues your friends build up included lots of trick parts like crank, rods, pistons, head work. This is going beyond basic B&B described above.