Lifters not moving freely

The rust ain't gone. But you need to clean it up. If the lifters cannot rotate freely, as mentioned they and the camshaft will fail quickly.

What would you suggest I do to remedy this? All I have is a 3 pronged honing device. I think it would work its just a matter of keeping the junk from falling on the cam and in the motor and perhaps "over-honing" the bores.