Used parts in the re-build?
Yeah, doesn't everybody do that? I don't have a problem with that in the slightest myself. If you wanted all brand new EVERYTHING it would cost twice as much.
Like the retainer on the side being a "used part". All it does is retain! It's not like theres any "load" on it, it will perform as good as a new one! And the center section case. Once it's been cleaned and checked out and passes inspection NO WAY thats going to break. But hey, you want a new one? For a LOT more money I'm sure you could have it.
The key parts are: Bearings and bearing races! These HAVE to be new, and I'm sure they are.
Thats surface rust on/in the case, I think, I doubt that's it "paint". A totally clean, bare piece of iron will turn brown and show signs of "rust" within HOURS! ONLY way to stop the natural process is to coat the metal with some kind of
oil or paint it (and I don't paint in there myself). Now your going to ship it, handle it, store it or whatever until you INSTALL it and the
oil coating acts like a DIRT MAGNET! I'd rather have a little surface rust but KNOW that it was CLEAN myself.
Nicks on the lower edge might cause a leak? Doubt it, but hey, file them down, can't loose doing that. To say they will result in a leak is like a lawyer telling you the WORST CASE scenario because THAT will cover all the bases.
Former Ford trans and REAR end rebuilder working on COMMISION. If it came back, I'D have to "eat it"!
Ernie