Got the generator bearings ordered. Turns out the local Onan guy was able to get them dropped shipped for $8 a pop with very little shipping. So I went ahead and got 3 of them.
Was also finally able to find a reasonable price on standard ring sets at $40 per bore. This was for the Onan versions (the Lister sourced ones were $80 a set and the local Onan guy wanted $170 per set!
So that's all inbound. I also gave giving the bores a light hone a shot. I ended up using a mix of kerosene and Marvel Mystery Oil. After starting out by dipping the stones in it every 15 seconds, I finally got smart and poured it into a spray bottle and gave it a squirt on each down stroke.
I have no idea if this looks about right for a light hone. What do you guys think?
http://www.cstone.net/~dk/MEP802-8-12-01.JPG
http://www.cstone.net/~dk/MEP802-8-12-02.JPG
Also also figured I'd try to get rid of some of the rust from the generator rotor and stator. I soaked some shop towels in Evaporust, wrapped it around the rotor and then sealed it with cling wrap. On the stator, I'll do 1/4 at a time and just let gravity hold it in place. Hopefully it will at least help a little bit.
http://www.cstone.net/~dk/MEP802-8-12-03.JPG
Taking the block to the machine shop in the morning to be hot tanked.