I know I'm probably coming in late on the discussion, but my first look at your pistons said to me: No oil. With no oil the pistons expand and start scraping the cylinder sleeve walls. The light colored substance is the metal from the cylinders starting to mesh with the metal of the pistons and become welded together until the engine comes to a complete seize up. That's my $.02 on it. I would do everything wayne advised you to do..... after all he IS the Alpha Pelican around here. RS

I once saw an engine that had KS cylinders with Mahle pistons (yes, a MM special).
I suspected non-ferrocoat pistons on Alusil cylinders......but MM carnage was much worse than what is pictured in this thread, but where this one was headed.

Winter project.........
 

Rich,

I've done several top end rebuild projects in the past and always wanted to do a full rebuild. So this is the one for me. I'm delaying the rebuild because I'm finishing a 3.0 liter engine transplant in an SC roller for Tom C. (NJ). The original target date of completion is Thanksgiving Day (that's today) and there are more things to do before being able to drive the car in the street.

Once I get this roller on the road, I'll have more space in my garage and proceed with the assembly. So this will keep me busy this winter. Do not feel bad about this thing, you have nothing to worry. This could be fixed and I could benefit from this experience.

Tony