Believe it or not, those bearing don't look all that bad.... even the ones into the copper backings. That's about normal for a motor that's had marginal oil changes (all the black stuff in the lifter valley) and over 100K miles. What were the symptoms? Knocking?
Anyway, I'd take the pistons, block, heads and crank to a machine shop to be cleaned and cracked checked. Have the crank checked for size and polished or cut. Although, it probably could be polished from the looks of the bearings. Does it feel like a washboard on the journals or smooth. Have the pistons cleaned and checked to the bore size. They might be able to hone the cylinders for new rings without having to bore oversize. Anything up to about .003"-.004" clearance will be ok. Get the heads checked over, a valve job done and some port work done to the exhausts.
As for the parts, you'll need to have the crank and block/pistons checked before ordering anything. Otherwise you'll wind up with a bunch of pieces that may not fit. Also, that kit is for a non-SC motor. I'm sure Northern has the SC kit, I've dealt with them many times and they're great. Especially since they'll let you piece-part the kits. For instance, if you're block/pistons check out and your cam and lifters aren't bad they can be reused. Northern will remove them from the kit but still let you buy the 'Master Kit'. Everything down to the freeze plugs can be modified. I'd recommend getting the FelPro gaskets and Moly ring upgrade. A new oil pump will probably NOT be included in an SC kit, so ask about the specifically and ask the rep to double check the number for SC versus non-SC. All of the reps I've dealt with have been great and actually knew what was going on.
Good luck.
Steve