Started tearing down my 8BA today I have a few questions

[Russco]

This motor is out of my coupe it was in there when I bought the car I know nothing else about it. I have put several thousand miles on it in the last 3 or 4 years. It always seemed to run ok but it was just really lazy, I have a stock (other than Bubbas Dist.)8BA in my 51 that would run circles around this one. It also had alot of blow by and used oil on road trips and didnt carry much oil pressure when warmed up, 35psi or so at best hardly anything at idle. It also has the taller oil pump and modified oil pan on it. I noticed what looked like coolant leaking from a couple spots around the heads too, so I finally pulled it out and started tearing it apart. So far here is what I've found.
The Pistons are marked STD. when measuring the bore at the top of the cylinders I'm getting 3.205-3.208 and oddly there really is no wear ridge at the top of the cylinder just a bit of carbon bulid up that scraped off easily. I can see no visible cracks anywhere on the head mating surface. It has Adjustible lifters and the hole for the fuel pump rod has a plug welded in it.
The #1 cylinder bore is a bit buggared up at the top. Looking for advice on the rebuild and anything to look for when tearing the rest apart. Here are a few pics of the top end.
I see the 4" kits from Speedway with rods and pistons and are balanced any thought on those? Thanks in advance Mike