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300$ is not a fix. If the rings are in fact worn then so are the cylinder walls. By the time you buy head gaskets and head bolts plus the time...i would tear it down and actually find the problem and make it righr. You are going to do whatever you want tho so get to work and let us know how it goes.
And if you have shavings coming from anything to do with rings then the cylinder walls are absolutely destroyed along with piston skirts.
I would be looking at that lpop real hard along with cam bearings,lifters, Crank bearings etc. Thers a lot of possibilities here for failure.
anychance that they used arb head studs or can I request it ??
If you look at their other motors, they have a couple desired performance options. I don't work there so I don't know but you could call. I have dealt with them before and they are pretty good to talk to.