What exactly are you getting for $1900? I wouldn't be all that excited about getting a sub that you can pick up for less then a hundred dollars.
"Basic stuff" means what? New bearings? New piston rings? New gasket kit? Oil pump? Honing cylinders? Cam grind?
If he's putting $100 worth of gaskets on your motor and charging you $1900, i'd say your getting ripped off.. even if he's completely rebuilding it, i'm still skeptical.. Now I doubt you're getting a "brand new" transmission, so what exactly are you getting? A $200 LS transmission?
If you want to know if you're getting ripped off, we have to know what exactly he's doing to your car.
Sorry my answer didn't just jump in and say it was a fair deal, i'm pretty careful when I spend money, and there's a good chance I wouldn't be paying that guy $1900 to do what he is doing..