How bad is this cylinder?

Could be a chromed cylinder which is not the proper treatment for that motor. Yamaha chromes the interior of their snow machine and oitboard motors and they require a oem piston with a certain amount of silicate.
@2strokesteve89 @ossagp correct menifnim wrong.
 
I'm pretty sure 1988 was the last year for a sleeved cylinder on that bike, and to my knowledge a sleeved cylinder cannot be plated unless the sleave is removed from the cylinder first then reinstalled, supposedly because the pretreatment of the cast iron or steel sleave before plating would disintegrate the aluminum. But I guess it can be done, however I would not go this route as the advantage of plating a non sleeved cylinder is heat transfer, you would not see this advantage with a plated steel sleave, I would just either hone or bore the cylinder depending on the service limits of the existing piston/ring to cylinder clearance.
 
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