Looking at those pictures it needs to pulled apart and honed and new rings fitted. You could probably save the piston.
The picture marked Cylinder, is that of the lower part of the piston, or is that actually inside the engine??
Now if thats what its like on the exhaust side, what is it like on the inlet side????
The piston only gets looking like that for one reason, its been run with no oil at some stage. The damage starts on the exhaust side and will get the inlet side last.
Like i said in the other post, they will run on stuff all compression.
From here on in i would say that you are just going to be making it worse.