The oil ring expander (only one) actually overlapped, instead of being butted up end to end. This caused the upper and lower oil rings to lay flush against the piston, instead of being pushed out by he expander. I now have Deves rings and I like the design of the oil rings much better. Two seperate expander rings, with the gap set 180 degrees apart. I've checked the ring gap as you suggested with these new rings, the gap is .008-.009 for all cylinders. You should check both compression rings, ie for a TR-6, check all 12 rings. Its easiest if you use one of the pistons to gently push the ring into position to ensure it is set square in the bore. And I did replace the thrust washers, tho mine were not all that bad for the amount of miles on the engine.
As for the compression rings, my set does have a step on the #2 ring, and TOP is stamped on it to ensure the step faces downward. The top ring is identical top and bottom.
Mark