[Henry Schmidt]

If the pistons are still usable, I would suggest having all your existing cylinders Nikasil coated. The coating will repair any surface anomalies, can be sized to each piston and offers better sealing and reduced friction making the cylinder better than new.
If the pistons are not within spec, I would look to bore the cylinders and replace the piston with an over-sized one.
Since the engine is apart and the cylinder shows issues, why use it as is?