I'll have to wait until tommorow to show pictures...

The bearings for my cam had major pitting/erosion(??)

The cam also has what looks to be rust between the lobes. I didn't know the motor sat idle for so long before I bought it.

The crank bearings look good, I'll post pictures of those, but the cam bearings are scary

Glad I took the motor all the down, I would think major motor failure would have happened not too far down the road

surface pitting is from sliding contact. either the follower was not rotating or someone mixed and matched lifters to the cam. do you think it was starved for oil, run way rich or not maintained?

first option is to shoot the PO.

The cam bearings do show wear more than the mains, it could be because they are made from a different material. This wear apperance is normal and OK, but you say erosion, now that sounds bad.

Get double thrust cam bearings, you can get them from a bug shop if your favorite P- dealer dosen't carry them. Type 1 1600cc (beetle) cam bearings are the same as type 4. Get the copper coated ones if you can.

The cam 'may' have had rust on it before the PO or his mechanic even installed it. Parts without cosmoline on them begin to rust in seconds. Minor surface rust on the non-wear surfaces won't hurt anything.