261's didn't have hydraulic lifters, as they were truck engines only. The only exceptions were "Pontiac" 261 engines in Canada- - - -they were hydraulic.

Cylinders aren't supposed to be tapered- - - -they wear that way. Most of the taper wear happens in the first 1 1/2" or so at the top of the cylinder where the combustion pressure is the highest. That what causes a "ring ridge". You can measure the diameter about 3" down from the top and it will be almost exactly what it was when the cylinder was freshly bored and honed!
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!