Here's how I would do it. Sometimes, rust damage is misleading. Since you'd have to bore anyway, I would take it in let them clean and mag of course, because if it's cracked somewhere not repairable, it's junk. Then let them bore the water damaged cylinder to like .028" and see what it looks like. I've seen stuff clean up at .030 I never thought would. You just don't know till you try.
