You might be interested in [this paper of Jason Manning][1]. He proves (assuming the solution to the word problem in $G$---basic undecidability results tell you that it's necessary to assume something like this) that there is an algorithm to construct the discrete faithful hyperbolic representation of $G$. I don't think the strategy is at all what you suggest, though. Instead, he builds the character variety $\chi(G)=\mathrm{Hom}(G,SL_2(\mathbb{C}))//SL_2(\mathbb{C})$ and computes its decomposition into irreducibles. Mostow Rigidity implies that a discrete faithful representation is contained in a 0-dimensional component. This gives a finite list of representations to check. Now, for each of these, his algorithm attempts to either construct a fundamental domain using hyperbolic geometry, or to find a proof that the representation is not faithful or discrete. >So one could also hope that any fundamental group of a hyperbolic 3-manifold has a nice presentation. This sounds *extremely* optimistic to me. (Well, it depends what you mean by 'nice'.) [1]: http://arxiv.org/abs/math/0102154