My front suspension -pics, is this much rust OK? Options

[Chris Pincetich]

First I got the front end up - practice pic post (IMG:style_emoticons/default/smile.gif)

[Chris Pincetich]

Now for the questions:
1) Can you see the thin metal piece near the top of the wood block on my jack? It looks like the remains of something that was thin, metal, and rusted off. What was it???
2) Is the pitting of rust on the round cross member severe? Should I work on wire brushing it off, acid prep, and paint it? Maybe look for a replacement??
3) Same questions with the master cylinder: too much rust to buff out and keep it, or get a new one?
4) Can anyone confirm the sway bar is Weltmeister? Is the "22 mm" the width of the square end of the bar, or do I need to measure the OD of the actual bar inthe middle to ge the measurement ofr the size?

I have only been driving a month w/o the gravel cover - but a lot of that was in the rain. My car has rust issues - some fixed some monir and now this! (IMG:style_emoticons/default/dry.gif)
No - I am not looking to go to a 5-lug suspension or anything like that. However, getting a bargain budget suspension set-up at the Parts Heaven swap then getting it all rebuilt and coated in my garage for a full swap would be interesting....any advice is greatly appreciated (IMG:style_emoticons/default/beerchug.gif)