Looking for 360 advice on a budget.

I think if you are going to re-use the pistons then simply accept the low compression and move on. You can spend a lot of cash and creeate isues to overcome by trying to do too much with the wrong parts. So keep it simple and you'll be much happier. As far as honing... I have used green scotchbrite wrapped around the stones of a rigid hone to get rid of minor surface rust and grime and to give the moly rings something to seat to. You will make more power by doing that then by making the bores larger and rougher with a ball hone.