Originally Posted by Scott Douglas

If you really want to keep it cheap, sand that piston down some, re-use the rings (they don't look bad) and get your self a bottle brush hone and hone that cylinder till it shines.
What's the worst thing that can happen?
You have to take it apart again to do the re-bore etc.
What's the best case scenario?
It'll run, might use a bit of oil, but will probably be OK once all the parts get familiar with themselves after a while.