Lower-end Rebuild Advice

[Citidel]

I am currently in the middle of my first lower-end rebuild (Wahoo!). The bike is a 2001 CAR250. I have already torn the crankcase apart and removed all of the bearings. My question has to do with the condition of the cases. The following are links to 3 pictures of the right crankcase. The last 2 pictures have accompanying questions. Thanks in advanced.

Pic1: Crankcase overview

Pic2: Chipped surface closeup
Shold I be concerned with the area at the bottom of the crank recess where the finish has slightly chipped away? If so, what are my options?

Pic3: Bottom cylinder marks
I assume the bottom of this piston caused these marks. What is the best way to smooth these out? Are they anything to be concerned about?

 

[j32]

pick at the chip and see how deep it if its just surface leave it alone
cyl marks light sandpaper 600 grit,that really doesnt matter though
the other looked fine
new seals and berrings center gasket and youll be ready
i suggest using indian head -or shellac to seal the gaskets
it is extra protection from air leaks!!!
and cleans with laquer thinner
except the head gasket- be sure to torq to specs

 

[Citidel]

The chip seems fairly tame. Thanks for the reply!