A stock Lyc has set limits for rotating and recip balance. The T-bolt limits are a bit smaller. The difference is not huge, but like so much in aviation manufacturing these days, the exact numbers seem to be a state secret. See Henry VI, Part 2, Act IV, Scene 2.
The "port and polish" is balancing of a different kind. The ports are not enlarged or changed significantly. The idea is to put a set of cylinders on the flow bench, find the best flowing one, and then tweak the others so they flow the same. The end result is similar volumetric efficiency for all. If every cylinder gets the same air charge and the same fuel delivery (adjusting GAMI spread is your task), they make similar power.
Regarding smoothness, it's my opinion that the cylinder flow balance is more valuable than the rotating/recip tweak, in particular for a 540 with its long crank.
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Dan Horton
RV-8 SS
Barrett IO-390
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