120-125psi is a more normal reading. Depending on the skirt wear the piston might well go again and will only require rings.

Piston to bore clearance can be anywhere from 0.030 - 0.045mm. For a road bike the tighter side is better. You'll need a good bore gauge.

Check the ring end gap of the rings but they will most likely be worn out.
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If I have to take the carbs off once more...