Wow, good work! That's pretty impressive.Yes mine also had water pitting in the cylinders. That in combination with the piston seizing is why I chose sleeving over re-boring. I didn't want to bother trying to guess how deep the rust damage was.
As for finding resleeve kits , all the 2lt rebuild kits i found on my net searches were sleeve kits. They were all in the $650 range. Some had straight sleeves some had flanged sleeves. I ordered a straight sleeve Kit. The machine shop I found that would work on diesels did not want to use the straight sleeves so I had to order a second set of flanged sleves @ $78 +$50 shipping UAE.
The flanged sleeves were standard bore but extended slightly past the original bore. I had to do a little die grinding to accommodate the piston oilers and add additional clearance for the connecting rods. The the rods did not contact the sleeves but were very close. You can see how much i removed from the sleeves
In the block pics.
What sort of procedure do you intend to follow for bedding in the rings? This always seems to be the most critical thing with these sorts of diesel rebuilds. Special break-in oil? Load it down hard on a long haul?
A friend of mine bought a rusty LJ78 with blown trans (owner bypassed cooler and burnt it) and parted it out. It had a perfect compression 2LTE, so I bought the short block from him for $700CAD. I replaced bearings/seals/gaskets but left the pistons/bores/rings alone. My pics here: 2LTE semi-rebuild Still running excellent a couple years later.