Don't have a panic attack just yet ol'mate
A couple of more questions need answering
What brand of oil and ratio you using?
I have found that most of todays
synthetic oils are too efficient and cause a premature varnishing of the cylinder as you describe, the rings can't bed-in if they arn't put under enough pressure. The cast lining on the cylinder will attract the oil and build up a glaze. This then causes the rings to slip and break seal and it compounds to what you now have!
"putting around" as you have been told to run it in, is a wank!! If you dont get on the gas after about 30mins of "putting" it will glaze-up! If it was going to have a mechanical failure it would have by now!. Just give it a light rub with some 1000-1200 grit W&D ensuring to maintain the same cross hatch as the original rebore, then ride it like normal. Most guys that ride 5-hungies don't get them up to the normal stressfull ranges that a 125 or 250 cops and normal riding a 500 is like running-in for a 125-250cc
As for the SERCO rebore, I use Al all the time and never had an issue with one of his rebores. Have faith it will be the Oil and running-in procedure
Bill.