It won't be perfect or ever make all the HP it could, but .007 will live a long time and run well when you consider the anual mileage the motor may see. The question I have though, was the taper honed out of it before you measured it? Not with a dingleberry, but a real ridgid hone? The problem with running a cylinder in your situation if it has taper is the rings don't as seal well at RPM. Having said that, I ran a 440 std. bore with .007 on stock cast six pack pistons well into the 10's, still had good leakdown after 300+ passes and 10k+ street miles.