Ok, update time:
After close inspection, I did find a locating pin, but for some reason the ring turns around (yes when closed), seems to be too located too low, or worn...
The piston doesnt look tooo bad, but there is a bit of wear and movement (rocking).
Checked the bore and it looks spot on, it is bored 2nd oversize.
Did think about removing the bottom(problem) ring, as there are aftermarket pistons available that only have one ring, but Im starting to think a new piston and hone might be the best route.
Have to wait until monday to get price and availability from the stealers...
I now saw that the crank thread is also damaged on the flywheel side, looks like somene struggled to remove the flywheel and pulled the threads a bit, nut turns on very tight and there some distortion in the threads(looks like it was over torqued).
Did some measurements and with a new nut and doing away with the fat washer/spacer, I might get away with enough thread. It still does tighten up though, but I doubt I would be able to torque it correctly or it might come loose at the wrong time, causing more damage.
The further I dig, the more problems im finding.