depends on measurements really. Is it out of round? tapered? only way to really tell is to measure it. Are those vertical marks dug into the cylinder wall or just normal wear marks? its kind of hard to tell with the picture. How much of a ridge is there at the top of the cylinder wall? If it measures out ok you may be able to get away with honing it to remove the glaze and restore the crosshatch.
I think the number on the piston indicates 60 thousandths over size so it has been bored out quite a bit. I don't know what the max limit is for boring out the cylinder, or whether you can get larger over bore pistons and rings. You should probably take that into consideration as well when you are planning what to do.
According to the guy who did my overhaul (and to Charles), .060" is max overbore for the T245 engine. If the engine is in need of another overhaul, it will have to be sleeved. (The sleeves will be stock bore, so you'll need new pistons if you go that route.)
as said above, you should get a bore mic and mic the bores at several locations and orientations up and down. Those lines in the bores could mean death, or they could be just fine, but, without measurements, it's tough to tell.