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Boring a cylinder brings it back to round. As a piston (actually the rings on the piston) slide up and down the cylinder, there is friction. With time this friction causes wear within the cylinder. So boring brings the cylinder back into perfect condition, just a little bigger than original. You need this so that when you replace the rings, they have a fresh surface to seal to.
Yes, a sleeved engine can be unsleeved but you will need to put another sleeve in its place (the sleeve was in there for a reason you know). If you have blow-by you will have blue smoke coming out of your exhaust (burning oil). Your engine won't blow up so long as you add oil to keep it at normal levels.
An engine(block) should not be bored more than is needed to make the cylinders round. Bored out engines run hotter and are more prone to warping and cracking. The gain is cubic inches is small. It kinda depends on how you plan to use the car. Every little bit helps if you are into racing but you don't want to cook your new engine sitting in a traffic jam for 10hp. :cool: