I don't think it looks bad. Do all that other cleanup and ring change (don't forget your premix at 50:1 if you have no oil pump/reservoir). See how it runs. If it runs like crap it could be a number of things, but you may want to start by picking up a compression tester to check it. Should be about 120.
pd--does that look like blow by to you on the last piston picture?
A well-running stock Urban is pretty bullet-proof.