Those scratches on the mating surface of the crankcase look like a PO's gorilla attempt at removing the old gasket. Are they very deep or are there ridges?
I reckon you're right there. No ridges, slight gouges, nothing too terrible though. I'll probably take it in to the machine shop when I get the rest of it done and let them decide.
Having a look over everything else though, it all seems to be in good order. I'm thinking perhaps he never actually got it running again. All the bearings/gears etc look good. I'll go over them with a fine tooth comb when I've got it all cleaned up and before I put it back together, but so far the damage actually looks pretty minimal.
