I ended up dropping the head off at the machine shop. It was indeed warped a little bit according to them I just now got back from picking it up. It looks much, much better. I ran my finger across the machined surface and it feels a little rough to me, like hills and valleys. They assured me that it would be fine with the MLS gasket that I got.
Pictures of the head to follow after my girlfriend gets home with the digital camera.
I've been cleaning the block off by hand and have the vast majority of the gasket off of there. I ended up buying Permatex Gasket Remover and a steel chisel.
I was going to use a razor blade but it was too bendy, even with a holder so I decided to go with a chisel. I was very careful , used a low angle when scraping and took my time so as not to gouge the block at all.
Once you are done cleaning that block, get yourself a real straight edge and a set of feeler gauges. A ruler or something wont do, you need something with an accuracy of a few thousandths at least. Place the straight edge against the block face and with the feeler gauges check for any warp or low spots. Your manual should tell you how much is acceptable. If you measure any warp you'd be better off machining the block than putting it back together. If you do you'll just end up redoing it anyway. Also, I'm not sure with Hondas, but on most engines I've worked on you'll need to find out how much metal was removed in the whole process and choose a gasket of the right thickness to keep the compression the same.
Ufo - your head looks nice. The pitting isn't great, but it should be ok, as it's not really close to the combustion chamber, only the water jacket. With a new MLS head gasket, I wouldn't worry about it. BTW, look at the picture I attached, I circled in red the indicator on your head I was talking about.
IMO use a genuine OEM honda head gasket. for engine critical parts, OEM is the way to go. spray some copper seal and it will be fine.
The new gasket that I did get is OEM. I had been pointed to a Honda Service Bulletin by a member of Honda-Tech about the new MLS style head gasket that Honda was now recommending / manufacturing for my d15b2 engine.
I just have better peace of mind going with OEM when it comes to the engine.