Did you remove the pistons to get those measurements? If so, I hope you saved the shims, if any between the connecting rods and the rod caps and kept them in order. That's how the 216 engines establish the oil clearance for each rod, and that's important. Also, the cylinder measurements you posted indicate very badly worn cylinders. If you measure the cylinders from top to bottom, I'm pretty sure you're going to find they're worn tapered, with the biggest dimension near the top. That makes it virtually impossible for even a new set of piston rings to seal compression and/or oil for very long. .002" under the standard cylinder diameter of 3 1/2" is normal for standard-bore pistons.
We need a little more information about the condition of the engine before we can suggest a course of action. Right now it looks like a complete overhaul or a swap to a less-worn engine is in order.
Jerry
