Sorry for not posting.. She's getting better (I hope). Decided the right thing to do was strip the bottom end and see how bad the rust on the cranks was. It was not good but buffed them with a wire wheel to get the loose stuff off, washed throughly now partially reassembled.
Got a honing tool and gave that a go, got the glaze off, not perfected the cross hatching but I think it'll be good.
Bearings were good, seals too. Reassembled with 2 stroke oil and crank seems smooth.
Gave blower housing a bit of wire wheel treatment and just painted it with rust converter for now.
Made new base gasket and now waiting for delivery of piston, rings and head gasket for final assembly, depending on the postman, maybe this weekend it'll be back together..
Picture of crank is before rust removal, looks bad but it's mostly surface rust.