Piston Damage
#2
That's scuffing on the piston,usually from too much piston to cylinder clearances.How do the cylinder walls look on the block? I would take the block to a machine shop,have them clean the block and check the cylinder bores ,could be tapered,out of round,etc.
#6
Just from a quick look on the internet, for a 360 it looks like .0005 to 0015 according to this web page:
http://www.angelfire.com/ca/mikesspot/360specs.html
http://www.angelfire.com/ca/mikesspot/360specs.html
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