Unless I missed something, imo there is nothing that suggests it needs a new sleeve unless it is pitted too deep to clean up at 1 mm over . I would first remove the rust to get a better idea of just how bad the cylinder is pitted and then go from there . If it is beyond repair, you can get a used cylinder and bore that if it is much more cost effective than getting a new sleeve installed and you are on a budget.
Here's a standard bore one for only $52.00 with the promotional discount plus free shipping and a 30 day return policy if you don't like it.
http://www.ebay.com/itm/HONDA-350X-A...dYqlc1&vxp=mtr
Here's one here for $80.00 plus shipping that looks like it should clean up with a bore with a 30 day return policy.
http://www.ebay.com/itm/86-Honda-ATC...-/321160008894
Here's several more.
http://www.ebay.com/sch/i.html?_from...inder&_sacat=0
If you want to go to a big bore kit you could call TC Racing and ask them what is available as well.
http://www.tcracingengines.com/
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