2003 yz125 Advice/Help

So I just scored an 03 yz125 for 600 bucks. The thing is it doesn't run. The guy I bought it from said he was told it slipped a piston ring, so he got the parts but never fixed it and it hasn't ran since. I'm deployed right now so when I saw it I had my wife jump on it for me because well I didn't want to pass it up it's an awesome bike for cheap. What I'm looking for is some advice/help on what I'm about to get into.

I know I will have to change the ring at a minimum. I'm planning on doing a full top end just to have it done so I can track it from the start. What I'm wanting to know is if I should be expecting any other problems or if anyone else has ever"slipped a ring" before. Mainly if I'm going to have to possibly get the cylinder replated and all that stuff.

I'm also planning on pretty much tearing the whole thing down and changing all the bearings I'm talking wheel, suspension, and swingarm, cable and brake lines, plus maybe a new clutch. Is this over kill or am I on the right path here? I don't race. I mainly ride the local track and trail for fun, but I'm thinking of doing a few desert races or hare scramble type events once I get home. Any tips on set up for those would be nice as well since I'm going to have this thing in pieces I figure I should do it all at once. Thanks a lot in advance.

thanks for the reply I;ll be sure to give it a once over when I get it apart