Well, the pause has been very good!
I've had a chance to look more closely than I did before at the preparation of the internal engine parts.
Basically, I need to pull the block out of the car again, put it on the stand, and whip put the pistons and rods....because I did not change the connecting rod bolts. I had read in a Peugeot service Bulletin many years ago that they were no longer recommending systematic replacement of rod bolts at engine reassembly because the rod bolts were knurled and mounting them in the rod would ever so slightly affect the position of the rod cap and therefore the bearing positioning, which is BAD. That is correct, but the bulletin was from 1973....and my car is from 1966.
In 1966 (and probably up to 1970+) the 404 rods did NOT have knurling in them, but rather tight smooth sleeves to fit them in the rod holes. So that Bulletin does not apply to an earlier 404. Further, the workshop manual for the 404 KF2 states that the bolts and washers have to be changed systematically after every dismantling. In other words, they are stretch bolts.
The good news is that I have a set of eight of them, new old stock, with new washers and nuts. The bad news is it means a fair bit of new work. But: better now than later!
In 1987 when I did a basic rebuild on another KF2 engine, I did not change the rod bolts IIRC but that was as I say a rather basic rebuild and even though it was driven hard for 100,000 more km and never seemed to have a problem, I'd rather do this engine 100% properly.
The eight top bolts in the photo are from a 404, NOS, and the bottom one is one of six (!) knurled ones I have from a later Peugeot engine, possibly a 504.