A new frame would be nice, but not in the budget at the moment. I'm trying my hand at a repair before moving on to replacement.
In the meantime I'm working on cleaning the rest of the parts and starting to rebuild. I've got the top end cleaned up and lapped, just waiting for new tappet adjusters as the old ones had been overtightened and the threads messed up. Transmission has also been stripped and all bearings replaced. Just waiting to be put back together this week.
I also tried a new method of rust removal on the gas tank. I've had success with Evaporust in the past, but don't want to pay $100 for enough solution to do an entire tank. A few months back I ran across a video of a diy version that used citric acid and washing soda to create a similar sodium citrate solution. I know everyone swears by their particular brand of acid/electrolysis/voodoo, but this one did a great job with a lower chance of further eroding the base metal or damaging the paint. The steps I followed are below.
In a 5 gallon bucket, add 15 Liters of water. Mix in 1500g of citric acid crystals(I bought a 5lb bag from eBay for $20 delivered). Stir until dissolved.
SLOWLY add in 600g of washing soda. The mix will foam up so take your time and let each addition react. Once finished, add some dish soap to act as a surfactant. I probably used a bit more than 1/8 cup, which is too much.
For the tank, empty any remaining fuel and pour in a small box of drywall screws, couple liters of water, and a half cup of simple green. Shake the tank for 5 minutes in all directions to try and dislodge any loose rust. Empty the tank and fish out the screws. Rinse a few times to remove rust flakes. Once empty, fill completely with the rust remover solution.
Wait a day or two and check your progress. After a day you will see the small rust spots disappear, but some large ones remaining. You'll know its ready when the large flakes easily detach when poked with a stick. Empty the tank 3/4 of the way, keeping the solution in the bucket for the next project. Swish the remaining solution around before emptying to remove larger flakes. Rinse repeatedly with water, drains completely, and dry with a hair dryer on low. Once dry, either fill with fuel or use some type of oil on the interior to keep it from rusting again.
Before and after of the inside of the tank below.