Had to look a little to find a 3 mm bit for the ring grove cleaner. Again, the ring groves were packed with HARD burnt carbon. Wonder if this engine ever had the oil changed?
Got the rotating assembly, cam, lifters, double roller timing chain and sprockets installed in/on the block. Got the heads ported and valves lapped and assembled.
Picked up some Silly Putty (enough for the whole neighborhood) at CVS to check the valve/piston clearances. Put the old, compressed head gasket in place, some Silly Putty on top of the piston, sungged the head down, and rotated the crank a couple of times, CAREFULLY. Here's what happened.

Good news: no collisions. So-so news: I don't quite have the recommended clearanace for the intake valve. Best advice is to have minimum .100" clearance for exhaust valve and .080 for the intake. I miced the putty impressions at .101 exhaust and .065 intake.
Some guys on the Mav Forum say they run this combination of heads and pistons and have no problems. One of the most knowledgable says its 50:50. Some with be OK; some won't. They were really after me to relieve the pistons. I decided to bet that there won't be a clearance issue, or if there is, I'll hear the valves ringing before there's any damage. They wished me "luck".
So, I'm not following some of the expert advice I'm getting. Maverick Forum guys wanted me to bore the cylinders and cut reliefs into the pistons. Tiresmokers want me to buy a stroker kit. Time will tell how it works out.
Don't think I mentioned the issue with balance when mating an '88 motor with a '72 transmission. All Windsor rotating assembliess are externally balanced by the flex plate and harmonic balancer. Early ones have a 28 oz imbalance; later ones a 50 oz imbalance. '72 C4 transmission has a smaller bell housing than the '88 Mustang. Takes a smaller flex plate. Ford never made the smaller flex plate with 50 oz imbalance but after market plates are available. Ordered one off eBay for $45 plus shipping. Should arrive any day. My Mustang motor came with a 50 oz balancer but the rubber was severly cracked. I have a replacement -- standard Ford part.
Today I'll pick up some new freeze plugs for the heads and some new sealing compounds. Then I'll be ready, with my "How to Rebuild Your Small Block Ford" book, to finish the assembly. Gotta get this done so I can get back at the body and paint work now that the weather is cooling off. Hard to paint in the HUMID NC summers.