OP: a new OEM head gasket will be fine on that "pitted" block. That's not too bad, and you've done a nice job preparing it. Don't do anything else to it either, like trying to grind it with a hand held tool. I've seen guys on here do that...I actually purchased OEM bolts already and had planned on using those because my preference is generally to go with what has worked. However, I am now considering using the ARP studs, especially if I don’t have the block decked as they are reusable (I understand the FSM gives parameters for reusing the bolts as well, I’m just a ‘while you are in there’ kind a guy and would just prefer replacing them each time). With the pitting, I have concerns that the gasket will adequately seal and if I doesn’t, I don’t want to be another 270 bucks in the hole. Replacing just the gasket is a much cheaper endeavor (other than my time, which let’s be honest, we think is worth at least $1000 bucks an hour ). I was actually kind of looking forward to the last 90, who doesn love a tense few moments! You guys are awesome, I appreciate all the insight you are providing.
As I understand, you torque them to manufacture recommendation, which from what I can tell reading around mud, is 3steps to 80ft lbs and a retorque after several hot/cold cycles (although most don’t seem to do that or think it’s necessary).