So just simply replacing the rings isn't an option.. the cylinders need to be honed to help break in the rings?..
yes
After running the tool up and down the cylinder nothing fancy is required and I can then continue with gapping and filing the ring and reassemble the engine?
yes, depending on what you call fancy

That is of course if the cylinders aren't egg shaped or tapered when measured with a bore gauge, in which case machining is required and there would be no point in just replacing the rings without doing so?
correct. when you have the cylinder off either measure them yourself or have them measured. this is a good time to find out if you need a rebore.
Sorry for the list of questions but does all this sound correct or am I missing something? It seems this is rapidly turning from simple head gasket job to complete rebuild and, although I've never gone this far before, I'm not one to have someone else finish it for me.
it's probably more than you bargained for but look at the bright side: as you're going in now anyway, better make sure everything is checked and whatever needs to be done is done. then you'll be good for years to come.
in case it's not on your shopping list: you'll also need a new base gasket. and may want to replace o-rings (depending on your model).
What I meant was since my pistons are still on the rods I can't use them to square up the ring..
true but when you take them off the rods you can use them and that will probably be more accurate than using a bolt.
also, i've never done it that way but i imagine getting the rings on the pistons while they are mounted on the rods and quite close together, to be a bit fiddly creating more risk to brake one. maybe someone else can advise differently but i'd take them off.