My grandfather used to use the muffler mender stuff (He was too cheap to buy new mufflers) with good results. If you got the surface sanded and cleaned good, it should stick. After it dries, sand it into shape by hand. A power sander might overdo it. I have a similar problem to yours. I've got a '78 550 with a good 3 inch long dent in one of the sides of the exhaust. I'm bobbing this bike, so what i am doing is cutting the mufflers off right where they start (which I was going to do anyway) drill a hole in the dent, then use a slide hammer and pull the dent out a little bit. I would then weld up the hole, sand and paint the pipes heat paint black, then use some of that black heat proof pipe wrap. That should fix it up nice. Anyway, that's what I'm doing to mine just trying to throw you some ideas.