Cranked the heating up, stuck the kettle on, and had a good look at this engine.
Whipped all 4 pistons out. The rings and bores all look okay. Bores are a little shiney / polished for my liking, so thinking of new rings and a hone.
Shells are defo shot, can see the wear in them.
The crank, has some very light marks on it, but nothing too nasty. Can only feel a few of them if you really dig your finger nail into the marks.
I measured each journal on the crank with a vernier, vertically, and horizontally. And there was about 0.2mm difference in it. Is there a tolerance to go by with these engines?
I then wire wheeled the engine and head, and decided to go all classic-Mini on it, and give the engine a paint.

RS125 engine in the background, one of my other projects which has been pushed aside thanks to this SJ...


And ring gap, which is .013"

Ben