Check out http://www.eric-gorr.com/ . Eric is one of the top if not the top two stroke motor builder in the US. Super nice guy and if you keep your questions concise (short) he'll help you out.
As others have already mentioned, no honing on nikasil. When measuring the cylinder, is the center portion bigger than the top or bottom? As a two stroke cylinder wears, it can "bulge" in the middle. Eric's book on offroad is full of great info. Some guys swear by dry assembly while I and many others say cover everything in oil while assembling.
It's possible that your rings are too small leaving a unacceptable gap causing a lowered compression. Check the ring end gap to insure proper sizing. Also be aware that you could have an air leak, simple as a damaged head gasket or too thick of a base gasket. The piston should also have a mark indicating the forward position in the cylinder.