Coolant leaking into 318 cylinder 8

Your doing the right thing. Those mid 80s 318 blocks are crap anyway. Almost every one I have looked at are cracked on the deck surface to those open head bolt holes. They are THIN. Sell off those cheap rebuilder .060 pistons and bore the replacement block the min required to clean up.
That's good advice. I might do just that. I will see what my shop tells me when they scope it.