Ring gear damage pics

[shawnlee28]

Heres the pics.... ...I have since called the previouse owner and confirmed he was actually driving it in town back and forth to work for a while,probably 5-7 miles round trip.He said he did not notice any funny sounds or feel anything out of the ordinary,he was going to do the same thing as I was ,which was change fluids and start driving regularly.I have done reverse and forward burn outs with it before all the work started and did not notice any sign of it.
The second pic is the carrier scarring from the missing tooth ,unless they are made this way?To say the least this was big disapointment at this stage ,because of funding schedules,I used all of my funds for this stage and was preparing for some shake down runs ,adjustments and the little things untill the next stage was saved for.
I am going to clean it all out real good with brake clean to flush all the tiny rust particles and green scotch bright for the surface rust.....it looks bad ,but the rust removes with a few scrapes of the finger nail.Also if you look at the second tooth to the right you can see the rust on the very corner of the tooth where there is no pinion engagement........I think that very little of the actual load surface is gone..?