I'll add my two cents worth of advice also.
I've run pistons that have had minor dings in the top with no problems. Use a feeler guage to check the ring grooves for distortion. If you have a tight ring, get a new piston. As for machining the piston, you will have to do all four, to keep the weights, and deck height the same. A few dollars more, and you could probably buy a new set of balanced pistons and cylinders.
What is causing your motor to burn oil? Is it rings not seating? Or grooves in the cylinder wall, from debris bouncing around in the combustion chamber?
Valve float? W125 requires dual springs. Valve float will cause valve stems, retainers and keepers to distort, and eventually lead to a catastrophic failure of your motor!
No lash caps? Stainless steel valves usually require lash caps. You never said what kind of swivel adjusters you were using. Courier or Porsche style? Courier style have smaller contact surface, and usually need a lash cap.