Very similar to mine but I didn’t get any of the plastics, clocks or lights. But my engine is mint. Looks like your gonna need a full rebuild. Might be best to pick up and engine off Ebay
Im currently going for the naked look an doing away with the full fairing. Gonna mould my own plastics from GRP
It would definatly be wise to take that crank out n take all the rust off, Imagine if any got into the main bearings
Looks just like melted piston on the barrel, this happened to me while slipstreaming a beamer at about 70 with the wrong spark plug fitted Altho i got away with just re-honing as the alloy piston wasnt hard enough to score the cast iron sleeve.