My opinion is if a 4.6 has a truly bad cylinder (out of round, gouge) just scrap it. It's one of the most long life V8 engines you can get you hands on, dont start with one like that which is beyond a clear indication of abuse. Been there done that. At this point in time they're still cheap, don't settle. Aluminum block is better as I mentioned but iron is fine too. If my DOHC died today and I needed replacement an iron block PI I'd easily swap in without too much regret