Update: touched up the crosshatch in the cylinders to get complete coverage in the cylinder walls.
Coated the cylinder walls with a mix of ATF and Commandant red (which is a coarser polishing compound)
Assembled the crank, rods, and pistons in the block with assembly lube. Noted the position of the piston rings.
Turned the engine over by hand for about 100 turns, re-applying the coating in between. After a while, you can see a good, even thickness of the mixture on the cylinder walls with small vertical lines. Difficult to see in the photo. When I was satisfied I disassembled the engine again and cleaned the block with a lint-free rag and ATF to get the grit out.
Cleaned the pistons in the parts washer. Re-lubed everything, and installed the rear main seal. Then installed permanently.
After breaking in the crosshatch, it looks like a plateau-honed finish. Very satisfied with the results.
About the pistons: nowhere in the book is there mention of piston orientation in the block. nor can I find anything on the internet. No marks or arrows either on the pistons. Are they unidirectional?
Still need to install the plugs that came in the rear main seal kit into the 1/2" bolts in the rear main cap.
For anyone thinking that engine stand is about to collapse because the block hangs crooked, it isn't. I used standard diameter pipes for the inner and outer mount point on the engine stand and they have a lot of room between
