Since my block has been previously been honed .20 over or 81.5mm and there seems to be scratches and nicks on it. What should I do next?

 

There are people who will tell you it's ok to bore it out more but I, personally, wouldn't risk it. I think you should replace the block if the nicks are causing problems or if you want to do something about them. It might be a good time for an upgrade.