The scratch is in the upper third of the cylinder, not on the thrust side. I was going to go grab a pic of it but it snowed and these old bones don't like being cold, so walking to the garage wasn't on my list of things to do.

I'm going to a ceremony tonight (my son won officer of the year) but I'll definitely get pics tomorrow. Supposed to be significantly warmer than 17 degrees tomorrow too. I'm really hoping I can just get by with a good hone and new pistons and gasket set. The cam looks great, just a little discolored where the lifters rolled over it. No scratches.

Yes I have had 2 340s crack cylinders and they were both stock bores. They both sat with coolant in them for 20 years or so and caused rust that weakened the bores.

The direct connection performance bible used to only recommend a max .010" over bore. Now we know that is extreme and for performance builds and the OP wants a DD motor.

Like I said earlier I would not bore any moper .060 over personally.

If you can just hone, then why do you need new pistons? Are they damaged?

I have a hand held sunnen hone that I use with a bigazz 1/2" drill and have honed many motors with it successfully and re used the pistons with fresh rings. You would be surprised how some junky bores can be cleaned up and ran for another 100K miles. I have done it numerous times.

Too many people have bored engines when they did not need it and now there are not that many left that are standard bore.

I still have 2 spare 340 blocks that are standard bore and 2 340s with cracked bores that might get sleeves some day if I ever need them.

So yes I have seen more than one engine go bad from cracked bores in small block mopars

Yes, one piston is damaged where the oil ring came apart. Even if I hone out the scratch, I'll need to buy one piston and new rings. Pics of the cylinder coming soon.

I wiped out the cylinder and got some of the "ridge" to come off; apparently it's mostly just carbon. But after magnifying the image I can see what looks like chatter marks on the cylinder wall. After wiping out the cylinder and taking a closer look I don't know if this'll hone out.

I'm wondering if those are crosshatch (normal) or actual damage from the mishap?

Is that pitting down low? Might be what broke the oil ring?

Yes it is. Very shallow, but there's lots of little pits. This is the cylinder that had the oily spark plug.

It's much deeper than the crosshatch, plus there are chatter marks in the metal there.

.060 is as far as I go unless a hemi block

I looked at another 360 for sale from a 1985 D350. It didn't seem to be in any better shape. People around here think that any V8 is worth its weight in platinum, running or not, and even junk is $400.

My plan at this point is to get it sonic tested, and if it's good enough I'm just going to do a low performance stock rebuild and bore it to .060" and call it good. Thanks everybody for the responses!

or a slant six, most any /6 block can go .100

I've heard that as well. But it costs about as much to rebuild a slant six as it does a 360, and the slant would be pushing 150 horsepower unless you spend $$$ porting the head.