Just to clear this up, the rusty looking stuff is actually dried up oil and rubs right off with your finger. Pretty obvious to me that you haven't built very many engines , if any , and are not quite sure what will work and wont work , or what is important and what is not. I cant fix that!!
Send crank back to Mike Booher.
As long as its a crank that I sent you , I will issue you a full refund!!! Mike