New to b2200. I'm lost. too much bs answers

I bought a 2200 88 from neighbor for 360 dollars. There was a knock in cylinder 1 I removed spark 2 cylinder , knock stopped.II drop the oil pan to find the thrust skirt of piston 1. cylinder 1 is now egged out. Here is my question. should I a bore and hone the block and clean and polish the heads with new over sized piston? Or new long or short block. $600$ option A, or $1793$/$900$ for long block/short.

If it were me... I'd drop the block at the machine shop and let them run an overbore. Take the rods too, and have them put the new pistons on as well.
BTW, you don't hone a freshly bored cylinder.

What do you think I should do with the heads?

You only have one head. Have the machine shop check it for cracks and warpage before any other work begins. If it's cracked, you may want to go with a new head from They'd still save you money over your longblock option.