So you have a fresh rebuilt engine that has been sitting a long time?  And you are taking it apart and then putting it back together?  To me as long as these were not damaged I don't see why you can't reuse them.  Are you sure the bearing caps were on correctly?  What are you finding that you don't like besides a  bunch of RTV?

it turns freely  it is in need of good cleaning an d paint ,Also i cant see any cross hatch on cylinder walls. Never liked finishing a project . 

No crosshatch on cylinders????  Is it a worn-out 4.030"  Figure out exactly what you have before proceeding.  If it is 4.030" and worn out (no crosshatch) you need to measure the bores.  No point putting a junk block back together with new parts that could be used on another good block.
At minimum, if the bore size checks out within spec, you will need to hone it.

Check the taper in the cylinders making sure they are not big at the bottom and good at the top.
IF...it mics OK I would dingle berry hone the cylinders....re-ring it and put a HUGE camshaft in it!!! (Of course!)
IF your not gonna race it..........just a street cruiser/bash mobile........very few trips to 6000 RPM.....I bet a 100,000 miles is NOT outta the question.
Run-it & enjoy-it!!
6sally6

After removing number one piston this what  I came up with someone installed a cam in it bearings are stamped standard and have been ran no assembly lube and look ran ,Plan to mic it check bore size and determine what to do next. The machine shop that I used in past is now closed. By no means is this a fresh rebuild.

That is my thoughts exactly. So now to see what he wants to do with it , If bores and crank check O.K. Probably re ring it  possible rod and main bearing  change also . 
 

Bearings are so inexpensive I have never, ever considered reusing old bearings.

KM wrote:

Plan now is to replace main and rod bearing journals were OK and didn't see any bearing problems . The bores look good no ridges , I checked the rings in the bore and on top ring only had  .010 gap that seemed close to me,Gap was same top and bottom of travel.  

Ring end gap is a good way to measure cylinder diameter variations by comparing gap top, center and bottom like you did.  However, as you observed, 0.010” gap is too small. You need at least 0.016” gap, and that vary depending on the type of piston.  Ask Al McGee what happens to an engine with inadequate ring gaps. He learned first-hand.

It is great that you found that issue before reassembly.

It sounds like they used file fit rings and didn't file them.  This would lead me to question what else got screwed up.  I would take the block to the machine shop and get the bores checked.  Possibly the machine shop did everything right and the guy who assembled it was at fault for the rings, but I'd have them check piston to wall clearance and check the bores for round.  You can check taper with a spot check with a ring, but round is a lot harder to check without a dial bore gauge.  It may cost a little money, but its this far apart, why take a chance? 

Bring it to my guy in Charleston!!!
Simmons Balancing and Machine Shop
Be prepared to wait.......wait.....wait.
Excellent work, I guess that's why they stay 'backed-up'.
Oh.....DON'T walk in talking on your cell...Ms. Vivian will immediately tell you to go outside until your finished...PERIOD!
Old skool quality.
6sal6

Thanks I may have located a shop .

Machine shop got back to me seems the cylinders are egg shaped. .030 over top and bottom about two to three thousands larger in middle..My thoughts seems even with that small expansion and contraction of rings would be hard on them. Bore to .040 over ? The other option we have a complete engine from a 67 cougar may strip it down look at that block and see where its at. First block is a 1966 casting.