340 Block Bored to 4.160????? Help

Does this mean a block could be over bored extensively and just sleeved to what you want it to be?
Yes. PAW used to sell std bore 340s that had 8 sleeves. They may have been better than new as the sleeves were uniform and perhaps of better metallurgy. IDK what the sleeve thickness was but they do sell 4.000 and 4.040 sleeves.