Nasty ... time for a new piston and rebore I think? One of the rings has broken up some time ago and banged up the piston ... can hear a few bits of ring rattling in the exhaust ... no bits remain in the ring recess or in the cylinder (should all the bits have gone out the exhaust?).
Can you still get a piston for these models? I will check the bottom seal like you suggested ... should I just replace it now we have come this far?
BTW if I replace the bottom seal, there is lump of round steel on the bottom of the crank (below the bottom seal) that the blade plate backs on to ... is this on a spline or is this yet another nut I am going to fight with?