Civic EG

i picked up my first hatch and i got it all running and drove it for the first time and it bogs down when it first starts up and then warms up and is fine but it smokes. so first time driving i got it up to 55mph and it had no more power and couldnt shift to 5th gear. doesnt bog when giving it throttle when idling. what do i have to do, replace rings? hone cylinder? please help me out

and there is also a lip at the top of the cylinder wall on all for the same, is this supposed to be there?