If you have already made the decision that you are going to repair this mower my advice would be to buy and install a NOS shortblock. Aside from any unseen damage resulting from the catastrophic failure, heat and friction have already started to take its toll on the cylinder walls. (evident in the pictures) There is something to be said about taking a step back and looking at a finished project. That "warm and fuzzy feeling" is why most of us do this. I imagine that is why you are this far into your DuraForce. In all reality, even after buying a NOS shortblock and the other ancillary parts you need, the total investment will still be less than buying a new mower. As long as you don't count your time anyway! LOL. Most of us gave up on vested time long ago!! LOL
Here is how this plays out in my head: Motoman is right about how to appropriately check the integrity of the cylinder/block. The problem is that unless you are planning to do a ton of these, the initial investment outweighs the benefit. Especially when considering the cost of a new shortblock. Now when the time comes that those blocks are added to the NLA list, the story may change. That being said, lets say you do a visual inspection and decide to use it. Clean it up, rebuild it with a new crank, conn rod, etc. ect. etc.. Get it all squared away, pull the cord and realize very quickly that something was missed, Back to square one- out time and money. OR.... get it back together, pull the cord and it fires up and runs great. For the next few mows anyway, because it low on compression from age and use. In a week or two you may be at square one again, needing a rebuild. Or... It works great for the next 20 years. All of those are possible. For myself, I like to remove any and all possible "what ifs" from the equation. I know that buying a new shortblock puts me in a far better standing from the start. New parts SHOULD give the desired results. That "warm and fuzzy feeling" turns into "rage and frustration" very quickly when I finish a project and realize I should have listen to that little voice in my head telling me not to cut corners.
Lastly, if you plan on keeping this mower, then a new shortblock will give you the satisfaction of completing a repair. It will also leaving you with a mower that should give you years of reliable service. (as long as you maintain it properly and swallow the fact that these mowers like new ignition coils, crank seals, and carb needles)
Thats just my opinon- take what you like and leave the rest
Let us know how it turns out. Don't be afraid to ask questions too! There is a ton of information out there and many of us are willing to share it, so just ask. Good luck and have fun!!!