[litnin]

It appears that most local shops here want me to strip the frame completely and the cheapest place i have found so far wants a min of $1000 to fix the frame.

Not counting any import or customs charges, you can buy a new frame
for an '01 VLX for about ~ $860.

Service Honda has them available.
The one I checked was an '01 VT600CD (deluxe).

If you are going to have to completely strip the frame to have it fixed,
just buy a new frame and move all your good stuff over to it.