Amazing that one little screw could ...um ... SCREW up a block. Severely sucks to see the damage.
This is going to sound totally stupid and probably isn't a valid solution, but I'll throw it out there, anyway: JB Weld's Industro-Weld? Maybe slime some on there ever so delicately, allow it to fully cure, buzz it down with a Dremel, and then hone it to match the rest of the cylinder walls. I've heard of this stuff being used to patch cracked engine blocks before with success, and seeing that this isn't a complete structural breach, it just might work for it. Then again, with the rings slicing past it all of the time, who knows how it'd wear. I dunno.
That's the best I can offer, aside from boring the hell out of ALL of the cylinders to match ... and then you run the risk of cutting things too thin.