Update...

Took it to my friends shop and I'm glad I did because it was kinda a big job and I just don't have had the tools we ended up needeing. Plus having a solvent/cleaning tank was amazing for cleaning out all of the engine parts from years of gunk and sludge. Anyways, we put all new seals and gaskets and also new crank bearings, honed it out and carbon reeds in it. Super stoked to get out and ride this thing today on the ice and see how she runs now.

Thanks everyone for all the advice and guidance so far,  just wanted to say this place has been a huge help.