If you have a weak stomach, look away now
and ignore the tie dyed bed sheet. The price was right
This pic might help to show the correct orientation of the seal cup in your second pic. Looks like you have it correct. That rod and washer looks no worse than mine did. Are the threads and adjusting nuts on the rod in decent shape? As long as all the pieces are structurally sound they should be safe to use.
And for what it's worth I used a short length of wooden dowel with a small piece of cloth coated with some alluminum mag polish in an electric drill to polish the inside bore. Brought the finish up real nice.