damn thats pretty bad. it is probably safe to say that your bottom end is toast or on the way to being toast.
to fix that damage you can get your cam journals line bored. although with damage that deep i recommend getting new cam caps and then having them line bored just so you don't have to shave the caps down any more than you have to. (cam caps are head specific and can not just be swapped around without machine work)
its probably safe to assume that your cam journal on the head is ****ed as well. a good head shop can weld that up with new metal and then bore it.
not many shops can line bore/hone cam journals. i am having that done on a head soon and here is the shop that i am using:
http://www.doverheads.com/