[olddog]

You need to talk to someone who knows how to hone. The cross hatch needs to be at the correct angle. Last time I tried it, my drill was too fast or I pumped up and down too slow. It takes some skill to get it right. Do it wrong and your rings will seal worse than a worn out engine.

I agree the puff of smoke at start is valve seals not rings.

As for rod bearings, short of abuse, a mild engine could not have worn them in 35K miles. New bearings could very well end up giving you more gap.

That said I would leave the rings alone. I would pull the rod caps and inspect the bearings visually. You could check a few with Plasti-gauge to verify they are not worn.

I have used plasti-gauge as a final second check, several times. It has always worked well for me. We also used it on the Model "A" Ford, to determine how many shims to remove, in order to keep the babbit bearings in tolerance. Never a problem with it. It is not as accurate as a mike. I like it for a second check.

If it were me, I wouldn't touch the bottom end, unless there was a problem. Then I would stroke it. If I could afford it, I would go aftermarket 4.125" bore block. They have better oiling and are stronger.

From the tests I have read, a mild 302 will have better low to mid range torque with the 165 heads, with only a slight high rpm improvement with the 185 heads. I still like the 185 heads better, and I'm not convinced that the too big of ports problem is completely correct. Every test and combination that I have the data for, they also went big on the cam. I don't think the 185 heads would hurt you with the mild cam, and you have better heads if you decide to stroke it later.