M50 rebuild options...

[GunMetalGrey]

So I pulled the head off of my e34 M50TU to get the head rebuilt (valve seals were not the best on the exhaust of cylinder 3). So I had planned on just rebuilding the head, and slapping it back on, that is until I saw the cylinder walls. I shall let this picture do the talking.

They are glass, not cool at all. The picture makes them look a tad bit scratched but they are not.
So I need to do something about that, and I feel as though I wont be able to re-hone those because they have a fairly good lip where the piston stops its travel so I can tell its fairly worn(fairly clear in the picture). I am thinking that I cannot get away with just re-honing and new rings, but am I wrong? Or do I have to bore over .25 and use new rings (which is freaking expensive) Anyone have any insight on this? Obviously I would like to keep this fairly cost effective.
Any help is appreciated, and I am open to all options here!

[scottinAZ]

damn dude, that sucks. I would clean the crap outta the cylinder though, the ridge may not be as bad as it seems. Then mike out the block for out of round/taper and check against specs.

if the block does indeed need a rebore, I would look into a lower mileage example vice dropping the coin on a rebuild, if the economics are what you seem to think they are, you would be $$$ ahead, and have a running car faster.

[GunMetalGrey]

I assume you mean verse instead of vice?

[scottinAZ]

I assume you mean verse instead of vice?

yes

[GunMetalGrey]

Yeah, and that's what I was just thinking, m50's don't cost what they used too, just pisses me off because a few months ago I scrapped a block :'(
Just didn't have the room, and now I wish I would have kept it.

[jrdeamicis]

I have a 2.5 block if you need one but you could just do a M54 setup rather than a 2.5 or 2.8, uses the same bore as 2.5 and you would be in there any way.

[GunMetalGrey]

Do explain

[RobertK]

I have a 2.5 block if you need one but you could just do a M54 setup rather than a 2.5 or 2.8, uses the same bore as 2.5 and you would be in there any way.

Do explain

Hone the block (use 89mm Flex Hone 220grit)

Install M54B30 (3.0l) or M52B28 2.8l) rotating assembly (pistons, rods, and crank) based on desired displacment.

Use the rings specific to your piston. Use bearings specific to the crank.