Question#1, based on your picture of the cylinders above:
-What pistons and rings did you use, and why is there no crosshatch from honing the cylinders?
Here is the [brutal] truth about the 350F/400F: you cannot simply replace the pistons and rings with new ones, as the new ones will never seat, and will continually lose oil (and run hot in the process).
The piston-to-bore clearance in this engine is a mere 0.0004" (that's not a typo! It is 4 ten thousandths of one inch) up to 0.0008" absolute maximum. If the piston clearance exceeds 0.0010" then it will continuously lose and burn oil.
Here's a second thing you need to know about: all of today's head gaskets are 20% thicker than the OEM head gaskets, so you must increase the thickness of the O-rings for the oil feed ports thru the head gasket by 20% when using today's head gaskets, and if you want back the original compression ratio you must also have a machine shop plane off 0.010" from the top of the cylinders while they are apart. This will restore original compression ratios.