That is a great start! Nice Jeep. The motor looks good from over here! Seriously at first glance I like it. The studs are still there. Those are usually discarded (wrongly) the first time someone tears into it. That is usually a path to trouble. Yours looks good. The bores look like they are not to bad, nothing a bore job wont fix. The valves look like they are collecting soot, a good thing as opposed to steam cleaned or burned up. It looks like it was running when it was put down. I think it will be a good one. It looks like they cracked that piston. That will cause it to expand and get caught in the bore even worse. At this point I would pull the motor and drive it back up and out the top. I wouldn't get to brutal with it. It looks to good to risk damage to the block. Over bore max is .080" You would hate to put a deep scratch in that cylinder.