Sounds like I should start looking for a virgin block, as mine has already had one major overhaul. Crank has been turned .010 under already, but they are safe to .030 from what I've heard. I haven't checked the bores yet, who knows, they may be .020 over, but that is very unlikely.

For the actual rebuild, I think my grandpa wants me to do it like an airplane engine. Do thinks like cc the combustion chambers and balance all of the reciprocating components. Where are the best places to remove metal from cc's, pistons, and connecting rods in order to balance them to make the engine run extra smoothly?

Should I be concerned about the lifter bores getting too large?

Apparently somebody else agreed with Smokey and that is why 400's have steam holes.