I took the block and head to the machine shop today. The cylinders look pretty smooth with very little ridge on top, so I am hoping that we just need to do a hone on the cylinders so we can keep the standard size pistons. That way we just replace bearings and rings.
The head looked to be in good shape and I am guessing that it has had work done on it previously. The head gasket was a standard Fel-Pro, so the head has obviously been off before. Machine shop will look the head over and fix as needed.
Also, looks like the crank has been balanced previously due to the holes and light shaving on the crank arms. Will have the machine shop confirm. Pics below