I'd recommend rechecking a few of those measurements. A .060 over 261 should measure 3.810 at the bottom of the cylinder, and the top measurement should not be much over 3.815" to get a good re-ring job. Beyond about .005" of cylinder taper makes the rings work awfully hard to maintain contact with the cylinder walls as they have to change diameter twice for every turn of the crankshaft. At 2500 RPM the rings in a taper-worn cylinder are changing diameter 83 times a second. If you've got less than .005" of taper wear, you're in pretty good shape for a re-ring job.
Jerry

"It is better to be silent and be thought a fool than to speak and eliminate all doubt!" - Abraham Lincoln
Cringe and wail in fear, Eloi- - - - -we Morlocks are on the hunt!
There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self. - Ernest Hemingway
Love your enemies and drive 'em nuts!