Thanks for the advice - I've been using your rebuild thread as my main source of reference for some time now!
The pistons do move slightly in the bore, they seem to be sealing quite well. I'm really in two minds whether to take them out or not. Something that nags at me is that there was a lot of coking on the inside of the cylinder walls, it came off real easy, but I still find it strange that the rings wouldn't take this off. The more I think about it the more inclined I am to replace the rings just because I have the engine open and its done then, but it all takes time.
Here are a few pictures of my head before repair.
I put the head on its side and poured kerosene
in the exhaust ports and the intake ports.
You can see in the pictures the exhaust valves
are leaking. Also these heads do not have steel
valve seats. The valves seat right into the
cast iron head. The cast iron is porous but as
the engine is run the soot from the exhaust fills
in the pores. Thats what I was told. After I lapped
all of the valves they sealed fine. I did buy new
valve springs because I though my old ones didn't
have enough seat pressure. The new ones were
much stronger.
If there is coking on the sides of the cylinder walls that the rings
are not cleaning off, Maybe the rings are stuck in the grooves
on the pistons. This could be why rings are not keeping
the cylinder walls clean.