Hi Eric
The datum to use would be the core hole in the cylinder as described in the book and ME.
You need to determine the distance from the center of the core hole to the bolting face and port face.
If the distance to the bolting face is more than 7/8 and the distance to the port face is more than 3/8 than you can start operations as per the description as there is enough material for machining.
If the distances of either are less than the dimensions above, it means that the core hole is not true with the block and provision must be made accordingly. LBSC describes a method here for plugging the core hole with wood and using this to find the correct center of the bore.
Let me know if you come right.
Regards,
Ryan