Well, 1 day after getting it running it failed to show any life at all. It was dead. No suprise, considering the bore had machine marks in it still, along with a bit of a taper. the piston and valve were slopped out. Its amazing it ran at all.
So the day I discovered it was not a runner I get a package it the mail. Boom, there it is, the answer to my question, graphite and leaded steel. Courtesy of GailinNM. (thanks again) Needless to say I started work right away.
Taking advice from everyone, and deciding what the best solution would be to lap the bore straight and smooth. I started with 100 grit on a wood mandrell, worked my way to 400. Then I used medium and fine lapping compound on a brass mandrell. Well I was not satisfied with this, so I worked up to a 600 grit sandp[aper and got a near mirror like finish in th steel.
So now its time to make a piston. I decided to go with the graphite. After getting them done and fitted I got the engine to run again, however it would only run for short periods of time. I was told the exp[ansion of graphite it different than steel so I suspected this Now it time to make another piston. This time I will use leaded steel. And it runs like a champ again. I got a few more tanks threw her and its running good.
This engine was quite a challenge to get running, and thanks to GailInNM, and all your advice, I got a nice runner.
Thanks again,
kel
ps
I will get some pictures up as soon as I can.