Thanks to all for the clarity it is rust and not grease. I will proceed with sage counsel.
Because of your willingness to share experience and tips, I have now embarked on my 3rd cb500/550 project.
Fun and relaxing to be doing a little wrenching and a lot of disassembly, elbow grease cleaning, and reassembly again.
It's been said before, I almost enjoy the process more than riding them when they are done.