I type too slow.
I was gonna say that I think Tim is in a postion to best answer you questions Jim since he just finished doing vitually the same thing you're about to do.
But to answer some of your questions.......Those wierd holes in the head are casting marks, and good on Tim for finding them in my pic
where have I been
The piston rings came from Honda for mine as Three piece units (one piece oil ring) so no need to worry about that.
That crap on the cylinder liner is hard as nails....so just ignore it
, I think it's a bit of left over glue which they used to hold in the liners or something.
Replace all the gaskets with new.....ALL OF THEM. That cam cover gasket will leak for sure if you use it. When rubber gets old, especially one that has seen oil they tend to shink and get very hard, which makes them poor at sealing.
I used my old pistons on a motor with similar mileage. If they're within spec, and you don't need to bore the cylinder larger than I'd say they're ok to use.
The valves are probably fine, but should be re-ground or at least, lapped in place....after cleaning of course.
I'll try to pay more attention to this thread
, My mind got a little sidetracked after the foot of snow I got on Saturday, and the 6 more inches on Monday morning.
Matt.