Sure it does. Just as you stated you take material off the inside of the sleeve diameter which means that you have to ALSO get a head gasket larger in diameter. If you did not do this then your head gasket or sealing part of the head gasket would protrude into the bore of the sleeve. You can go up to an 84mm overbore piston then you have to use a different gasket. http://www.cometic.com/powersports.aspx