The car is an 89 Crx, thoroughly trashed by my younger brother. I recently acquired it and plan to rebuild. I'm going the cheap route mainly because I have some good machine shop hookups. So I plan to rebuild the D16, bore it out, oversize pistons, and possibly shave the head a bit. My questions are, the largest pistons I found in a kit (for a reasonable price) are .040 over. Is that safe for a daily driver? I don't want to sacrifice the integrity of the block. Also, can you shave the head? If so how much can you go without treating a piston/valve high speed collision? And can you easily compensate for the timing with distributor tweaking? Any help will be greatly appreciated.

Edit: I have rebuilt Honda and Toyota engines before but just stock for stock. So this is my first "performance" engine build.