1.) Yes, I have seen all 8 cylinders in a block (both factory and aftermarket iron) sleeved. It is quite expensive however when adding up all 8 sleeves, and unless you are saving a block for a concours numbers matching restoration, I wouldn't consider it.
2.) Yes, it can be sleeved back to standard bore. As with any block getting sleeved, whether it's one cylinder or all, I would recommend filling the coolant jackets in the block at least halfway up the cylinders. When I had one cylinder in a 455 sleeved once, I filled the block to the bottom of the water pump holes.
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