that cylinder looks scored pretty bad....have that bored...i doubt its honeable. i would also check the crank, make sure its good. while your at it, change seals too. another good idea. while you have it all apart, pressure wash that biotch....get it clean again..the cylinder too. once you got the bottom end all back together get the top end in, and ready to rock...
heres a good chance to so a 240 kit and a +3mm stroker...and /or some portwork. you could either port whats there, or port a 240 cylinder...either way....and do the upper case porting (not sure if thats a popular mod with blasters) there are tons of ideas.....