Very curious to hear about your results.
As for my bike, I threw the towel in and sold it about two weeks ago.
I found a young guy with a wanted ad, looking for a 'project Honda CB'. He showed up with his Dad, I gave him the full run-down of the oil burning issue, aftermarket piston kit, all the back and forth I had gone through, and he seemed confident he could figure it out so we settled on a price and off it went.
It was more a 'cut my losses' kind of situation. I definitely lost a lot of money on it in the end, but honestly I think the Cruzin Image kit is 100% at fault here and absolute garbage.
As for your comments about the piston ring orientation, I'm 100% positive they are all put in right-side-up. I actually have photos of every ring on each piston from the last top-end I did, where you can see the markings, so I would KNOW they were in properly if I doubted myself later on. I've got 'em saved somewhere. I never did get to test it after the new guides and valve job, but I suspect i'd have been in the same boat. Those rings are no good in my opinion. Then again maybe I'm wrong and the kid will take it on a break in ride, it'll smoke for 50 miles and then clear up LOL. I hope it does.
I just bought my first house so I can't be dropping $$$$$ on the third or fourth try at an engine rebuild. Instead I've been out riding my K4 happy as a clam with no issues.