Comp cams xe268h for 318

I'm on the fence for the moly top rings... for just $20, I would do it as it will just be one more help in getting the bores to seal up quickly. But, of there is a lot of out-of-round or taper, it won't make any difference, IMHO. The lack of ring ridge is a good sign for bore and piston wear so that is positive. (FWIW, those few engines i did not re-bore smoothed out when revved but suffered at low-mid RPM's with uneven running. But some of the out-of-roundness and taper were very bad... like .006-.010" taper in a couple of bores! Let's hope your 318 block is not in that neighborhood of wear....with no ridge, I suspect it's not anything like that bad.)

As for bore honing, be aware that good ring seating takes a certain finish hone grit. Here is Hastings' info on that: Cylinder Bore Refinishing

I agree on the bearings. Even the few times I did not bore engines, I put in new bearings.

If you are going that far, I would also consider a new oil pump. If not, then at least take off the cover and measure the clearances inside and look at how bad the scoring of the surfaces and gouges in the rotor edges are. I always put a new pump into anything anymore.

And OK on the height measurements being to the highest point on the pistons, which I assume is the flat area. That number is working out to pretty much standard for an LA318. At least your heads are smaller which is a significant help to SCR and DCR. A TON better than putting unmilled open chamber 360 heads on it LOL.

I am still favoring the 256 range of cam for that engine after looking at DCR at your altitude (2200' assumed), for general driving around on the street. You barely eke out a 7:1 DCR with the 256 cam, with the .028" head gaskets and no milling and with the cam ICL installed at 104 or 102 degrees; that is just a tad above a stock 318 at sea level. The extra cam lift is going to help significantly once it gets going.