How did you determine that the block is warped? How warped is it?
How many miles on the engine? IF it is not leaking I think it would be good enough to go as is.
The spec for axial play on the intermediate shaft is 0.25mm. 1.0 is a LOT and 4X spec! Measure so you know for sure. Excessive axial play on the intermediate shaft usually means is that the thrust ring on the shaft is broken. If that is the case, then no, that's not ok to run as is. Running with the thrust ring broken runs a very serious risk of ruining/breaking/throwing the timing belt.To be clear, what I am calling the 'thrust ring' is a machined lip of the outer bearing journal of the intermediate shaft. The part that bolts onto the block and holds the intermediate shaft in place, I call the intermediate shaft seal carrier.