New pictures of the thing cleaned https://imgur.com/a/iPqCW , I sprayed it with WD-40, sprayed it off with compressed air, used a paper towel to dry it off, then used some thin 3-in-1 oil to grease it up for smooth operation, that made it turn super smooth. I then used a heat gun to warm up the crank case to be able to separate the sections, it took about 1 min's of heating then it just came off super easy. After the case came apart I oiled the inner bearing a bit more and now its super smooth, I don't feel any graininess or looseness. The crankshaft is not coming out yet, might have to heat up the bearing or press it out which I don't want to do. The piston cleaned up super nice and the piston rod feels like its in good condition.
I'm going to try to get the bearing out now, what's the best tactic?