If honing the heads will fix the compression issue, I would be weary that the block was overheated. Make sure the heads are done right by a trusted machine shop. Doing all new rings would be good... If you can get your hands on a good used Z06 cam, springs, and pushrods, then do it. If you plan on going FI (turbo), you might wanna reconsider doing 5.3L heads--because doing so will raise you CR--which is not good for FI motors. Spraying it would be a great idea, because the LS blocks hold up well to it. If and when you do a turbo, you might then want to reinvest in some 243 heads to go with it...