I enlarged your pictures and it appears that there are some serious issues here:
1. The number three piston is chipped around the edges
2. The tops of the pistons appear to be pitted and scratched
3. Bore look glazed – typically see crosshatch from honing on a newly rebuilt engine
4. Block and head surfaces are rough and pitted. They will not seal well to gaskets in their present condition.
As the risk of sounding patronizing, I agree with Jerry – you need some help as it’s obvious you do not know what you’re doing. There’s no crime in not knowing and you’d do well to buy a couple books and read up on building engines. And by the way, Jerry was born with no more experience that anyone on this site however; you should know that he’s been building real fast cars for probably more years than you’ve been alive and he’s respected as one of the best in the world. He may be “brutally honest” but you should “check your attitude at the door” and listen to him, Pat and others here who have a lot of expertise but really very little patience with those who already “know everything…”
At a minimum, you need to consider the following:
1. Dissemble engine completely. Hot tank the block and check it for cracks. If the block is solid, have it decked to square. Get dowel pins installed.
2. Hone the block and get new pistons and rings that are fitted to the block.
3. When you get the block back from the machine shop make sure you really scrub that baby down with hot soapy water. I like Dawn dish washing liquid and water straight from the bottom of the water heater. Put the block on the engine stand and dry with compressed air really well. Make sure you have a 55 degree or warmer day and paint the inside of the engine. I use Glyptal. Its $50 a quart from Eastwood – buy the brush on and a quart will do the job real nice. Also paint the exterior at this time too. Let everything dry real well – at least 48 hours.
4. Have the heads checked for cracks. If they’re good, have them decked to square and get a good valve job with new guides and seals.
5. Use new ARP bolts everywhere when reassembling
6. Use good assembly lube and proper tools for the job. Keep everything nice and clean as you go.
We have not seen the cam, but if it’s in similar shape, well – it could be bad as well. Post some pictures of the cam.
We’ll help you if you let us..
Regards,
Glenn