Frankly, with your box of bits and uncertainties, I would put out a wanted ad for a complete running engine!
You could be a long while removing a ridge with emery paper, even using a rotary hone can take some work! Also as the bore obviously has wear in it, it will in all likelihood therefore be oval, that ring gap is huge, you have to find a crank, set of shells (guessing) and there are concerns about that top ring not being a ridge dodger.
A new set of rings, shells, gaskets, and crank for a worn engine versus a known complete running lump from an ad...... Don't know about your neck of the woods, but I have heard they are almost littering the roadside in parts of Scotland
