John- The rebuild or renovate is a perpetual question here. I just finished a HG repair ( had the same issue with the SAI you did, make sure you have not damages the threads of the SAI to block connectors). In my case, I actually had one sleeve pushed up above the block face by just under 1mm. I was able to get the sleeve back down via dry ice to shrink the sleeve and a 1/2" steel plate to press it in. Aside from an O2 sensor issue which I cannot seem to resolve ( I'm giving up on fixing and taking to a specialist this weekend), the car runs great now. I've no clue how long this will last.
I was hailed by some here, ridiculed by only one. My 04 D2 has 174,000 on it and I did not see it having enough years left in service to justify spending the $7,000+ on a reman engine. I was offered $3,000 for my D2 but decided to go ahead with HG repair.
Looking forward to reading how your project turns out. Good Luck!

 

Don't pull the pistons out. If you move the rings it WILL burn oil. The engine looks great, put it back together. Good job man!
The pistons are always goofy looking and off center in the bore, when the piston warms up, it swells to meet the sleeve.