I agree with speedy.
Also, to fully gauge the damage internally, you need to remove the head. If you're to restore the engine to working order, you need to do that anyway. Disassemble the block; remove the head, conrod & piston, and crank. Hone the bore lightly, change the piston & rings, see how it goes. If it's really bad and you can be straight and accurate enough, you can hone a little more, and replace the piston & rings using oversized components. Remember, you can always take more off but you can't put it back on.
If you don't have a hone or other tools to accomplish this and don't want to spend the money on them because you won't do it often enough, you can either take it to someone to rebore, just leave it, or sell it.
Cheers,
pau13z
