My Machine shop owner buddy looked at it. He said it's ok to bore that out a couple thousandths if needed. I need new rod bearings (from stray metal) but the crank and all that is good. So he'll get it bored out just enough to get a nice smooth wall and then get do the honing and final fitting of the pistons.
In with a new clutch, most likely the Clutchmasters FX300. I'll put in some dual interceptors. I'll skip the intercooler for now.
Then I'll be ready to rock! I'm stoked!