Actually, that rust is the light colored stuff. It looks worse than it is in most cases although this is the internet and one never knows. The pistons look like stock replacements to me. Not high compression ones. If you are not going with a 4" crank, I wouldnt bother sonic testing either. Just mag it and go .040 over. If you need to go .060, and need to make a bunch of power, sonic test it. I find the 73 blocks are best to go .060 over safely even for 4" arms. Early ones will have more core shift.