Got a little more work done.
I got a 1-1/2" ball hone and welded an extension rod to it to hone out the inside of the fork lowers. That rusted rough spot is gone and everything is smooth.
Shaved the fork lowers of all the unnecessary tabs.
Here she is
Next I need to fix the kickstand, remake the front brake stay, make 2 front wheel spacers, mount the tail light, make a license bracket off fender, re-lace the front wheel, and remount the rear fender. Then the expensive work begins.