I doubt it. You would be amazed how short of time it takes for super heated gasses to cut though Al. I promise you, it is not a defect that could be covered up, even for a short time, with a new gasket. The process is more like a blow torch, not erosion like water over a rock.

As for the rings, well...vertical marks in an 20-some year old engine, is not uncommon. If you can't catch your finger nail in them, they are probably not significant. How muhc of ridge is there at the top of the bore? These bottom ends are pretty bomb proof. If the rings were that bad, it would have been smoking like a freight train.

If you shine a light in there, I bet you can still see the cross-hatch pattern, despite the vertical marks.

Good luck,
Michael