"Ran when pulled"

Rings aren't that expensive, pull the pistons out and try honing it out and see what what's under it. you might get lucky,or you might need to it bored. Either way it is what it is :rolleyes: My block looked a lot like that and it needed to be bored. for $200 you still got a great deal.

You could just put back together and run it as is and let it smoke:lol:
I totally agree. Pull it apart and just do rings and bearings after honing the cylinders and polishing the crank journals with 400 wet dry sandpaper. A freshen up like this could result in a great running engine that could last a long time. Worst case scenario is that you will be out $200 in parts, but I bet it will work.That is what I would do.