I'm basically certain that you do not need to have the block sleeved to use forged internals.
I would recommend that you either get the crank balanced (with the stock damper on), or get the crank balanced and get a Fluidampr (if you choose the latter, naturally it would be balanced with the Fluidampr on). Forged internals are generally weighted well, but the crank will need to be neutral balanced to avoid any problems (like premature bearing wear). The crank is balanced from the factory with a stock flywheel, damper, rods and pistons. It assumes those are there to remain in good balance, if you change one thing, you need to make sure everything else is working TOGETHER and not against each other. You'll also want a lightweight flywheel and a clutch\pressure plate upgrade (recommend Clutch Masters products) as this will keep all of the rotating components balanced (provided you know that the new flywheel is balanced, some cheaper companies sell unbalanced pieces).
Select bearings in the middle of Honda's color chart.
Use Total Seal piston rings.
Use a Cometic head gasket as well.
If you are choosing forced induction at a later date, piston selection and head gasket thickness selection are important NOW.
You should also have a machine shop check the flatness of the deck surfaces of the block and head. Find out if you are warped disassembled, not at 8,000rpms. If you have the mating surfaces milled for any reason, take at least the amount removed from the head off of the alignment dowels, otherwise, they'll lift the head up creating an improper seal with the head gasket.
I don't think you are going to walk away from this rebuild "stock". I don't believe you can just have a fresh overhaul, and oh, my rods and pistons are stronger too! You may one to consider two things:
- Fresh OE rebuild. Happy stock engine! Save your money for the building of it, get all of your parts at once and have it machined\assembled and ready to go many miles without being broke apart again.
- Build halfway now (with rods and pistons), and one day tear it back down to finish what you started (more expensive\time consuming).
Look at everything you do to your car as a job. When you do a job, on a car, generally (not always), the best rule to follow is finish what you start before you fire the engine. I wouldn't put a new set of coilovers on my car without buying a camber kit, would you? Why rape the tires? Cause you want to be slammed NOW NOW NOW? That type of impatience and immaturity can cost you thousands, as it does to thousands of now disillusioned former car enthusiasts who dump thousands into their ride and due to oversights, lose everything and go back to driving stuff like beat Cavaliers and never do more than put gas in it because they think working on their car is a waste.
Think about this, the engineers at Honda, they are smarter than you. And me. And everyone else who tinkers with their engines. They PROBABLY know some things we don't, and probably don't tell us those things because they are part of a business in a competitive market. Yeah, it sucks when they can't tell us their secrets, like those about the B20, whom everyone thinks is worthless because of the weak sleeves (popular idiocy, and yes, I'm aware a handful of tuners out the are more well informed about this engine than most), or the intricacies of the A6 and the care in design and production that went into it.
Shit, I don't even know all about that stuff. I'm still young and learning. But what I do know, is that I DON'T know. And neither do you, or anyone else that posts here, or lives outside of the walls of current mechanical engineering. The best thing to do when building an engine is let someone else do it, that knows what they are doing if you don't. It's great to learn by failing, it's called experience, but it shouldn't be at the expense of your finances. If you are this interested, go to school and learn on free engines that you can break all day for free from teachers whom you pay to spill their knowledge in tasty little digestible bite-sized easy to understand trinkets that fit into your unknowing brain. We all like to think we are smart, but we're all stupid. There's no such thing as smart, just less stupid than before.
Figure out what you want out of "your" engine, be it this B16, or whatever your goal engine becomes, but figure that out first before you play with it, it's less costly, less time consuming, less stressful and most importantly, the most enjoyable way. I watch as other enthusiasts lick their chops when new parts come in the mail and they install each one, one at a time. It's better to modify a system (suspension system, engine system, brake system, etc..) AS a system. Aside from the benefits of saved time money and energy, the increase in performance from start to finish is far greater when a small room of parts disappears onto your car then when you do it one by one. I know everyone loves to think they can really "FEEL" that strut bar when it's the first, and I mean FIRST mod their new car is getting, but that's just the anticipation fooling yourself, denying you of the heart break when your sub concious understands that you can't realize the full potential of minimal parts additions, and knows that you don't know that, but would think you just wasted your money, if you didn't "FEEL" the difference.
It's just cars and working on them people, this is way too easy of a thing to do with your time and money to be fretting over it so much.