I see some striations on the piston, but nothing to worry about. If you get a decent piston and rings, you should be good to go. Like you, I'd hone the cylinder first (I use a master cylinder hone for that).
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Weldangrind
"I figure I'm well-prepared for coping with a bike that comes from the factory with unresolved issues and that rewards the self-reliant owner." - Buccaneer
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