Not to be the bearer of bad news, but cyl. looks pretty bad. Being pitted like that I suspect you have either low compression in that cyl or perhaps no fire at all.
I know you're pressed for time, but if it was mine I would just bite the bullet and go completely through the motor. I've actually fixed several LPW4's in worse condition by using a Lisle micrometer head cylinder hone. I was able to hone the cylinders oversized, starting with 80grit and working up to 400 ( took a long time ) and I got oversized pistons from Mayi Diesel pretty cheap. Or take the block to a machine shop and have it bored. Throw new bearings in it to fix your oil pressure issue and you'll have a brand new machine!
