Ignition - Clean it, oil it, use it and replace it if it fails.
Crank case wear - Yes Sand it with emery cloth to get rid of sharp edges, do not remove much material as it will reduce performance.
Yes clean up the case casting flash / left overs with carbide burr or sanding drum, you can also smooth the surface of the cylinder ports while you are at it.
You can get the bearings from a bearing shop. If you put the cases in the oven and warm them to 150F they bearing should either fall out or will be easy to drive out with a bearing tool. Alternatively I have used my BBQ or a propane torch with a IR heat gun to make sure I did not get too hot. 150F to 170F seemed to work well.
Those two bolts are probably drains for the ignition and crank case.
The cases do not need to look pretty to be functional.
Good luck!
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