You can replace just one piston-(even an oversize) that's an acceptable repair. ( Assuming the other 3 pistons are not too egg-shaped with age.) You will need to hone and put new ringsets on all 4 pistons. The powerhead will have to come off, so you may find that the powerhead base gasket has failed-the reason for the oil running down the midsection-so you'll fix that when you reassemble. If the ring let go, you may find that the head on one side is badly damaged-perhaps to the point it will need to be replaced.