That's the first I've heard of that type of problem with the Big Block - not saying it's not true, but if it were, I have a feeling it would be well known and talked about ad nauseam on this forum.
As for your choices at that price... there are tons. EAI Bareknuckle, any of Leader's steel frames, Cinelli Gazetta, etc. Honestly, do a google search for $600 steel track frame, or just go to various bike shops' sites (Retrogression and Ben's Cycle are a two I like) and see what they carry.
You're gonna have better luck getting advice here if you have an idea of what your final build should be like and can ask about a few logical choices for achieving that goal as opposed to asking for all the possible options in a given price range. BFSSFG helps those who help themselves