This is not going to work at all well, and I will explain why in detail.
When a piston approaches the flat area of the head on two sides of the combustion chamber on the compression stroke, it produces a shock wave that serves two purposes: 1) it mixes fuel droplets that fell out of atomization getting into the chamber back into atomization (fuel will always drop out going around the short radius of the port and around the intake valve), and 2) it helps control the way the flame front propagates after ignition. This effect is called "squish," and it's very important in producing a fast, complete burn. A fast burn is desirable because 1) it completes while the piston is still close to the chamber and in a position to receive the energy transfer efficiently, and 2) it reduces the amount of timing advance needed, thereby reducing the chances of pinging or detonation.
As a piston drops away from the flat area of the head on the power stroke, pressure drops quickly until there's not enough to support combustion, and the burn snuffs out. This is called "quench," which should happen abruptly and at the proper time. This reduces heat transfer to the head and pistons.
The benefits of squish and quench are greatly magnified by moving the head closer to the pistons, the closer the better. With stock pistons and rods, the safe distance is around .032" cold. By using the fat head gasket you are proposing, your piston-to-head clearance will be roughly four times that. This will produce something on the order of 1/6 or 1/8 the squish and quench possible. You will have slow, ragged combustion. You will have to run over 40 degrees total advance to get any sort of performance, and the engine will ping, even at 10.3:1 compression. It will also run hot.
So, don't use the R-Sport head. It was a fine thing in its day, but you'll do far better with a B20F head that has some decent porting done to it and some larger exhaust valves. Deck the block for .032" clearance with a thin head gasket, then shave the head for the desired compression ratio. The engine will not want more than 32-33 degrees total advance, it will not ping, and it will inherently run cooler.
.001" bearing clearance is tighter than I would recommend...