The pin needs to be polished, Mark - you can't use it with substantial grooves around it. If it gets anywhere near the minimum diameter (1.020") it is scrap. Remember that I had a knock at idle from one that was above the minimum diameter (it was 1.0206"). Note that at present, measured across the high points of the grooves, it is still the correct nominal size for a new crankshaft, so the whole issue revolves around how deep those grooves are.
You always classify the crankpin by the smallest diameter you can find. That always turns out to be measured vertically when the crankpin is 20-30 degrees past TDC, which is the crank and rod's position when there is maximum gas pressure in the combustion chamber.
The maximum allowable diameter of the rod's big-end bore after you polish it up is 1.0264". However the rods are not expensive, so recovering it is not a good idea. I'd clean up the crankpin and see what its diameter looks like. If it is say, at least 1.021" at its smallest place, I'd put a new rod on it and put it back to work. At least that way you get a rod bearing that is less than 1.0248" diameter. In my experience big ends get noisy when the clearance gets to 0.003" or more, so if you meet those dimensions, at worst you would end up with an engine that has an audible knock at idle only.
