Restoring a 562 XPG, rubbing 'shiny spots' off flywheel?

[chopper88]

Hi all,

Long time lurker, first time poster here. I'll introduce myself, you can skip to the end if not interested ;
I've always used a smaller cheap Mculloch 10-42 for some firewood and removing a branch here and there, which is a rebranded Electrolux for which no information seems to be available on the entire internet, and whenever something breaks you are on your own.
I've had my eyes set on a 'real' saw for quite some time to remove some trees in the yard, but can't really justify the cost (The 562 XPG is a $1380 MSRP saw here in Europe) for these occasional jobs. So decided to get a project saw and fix her up. This way I'd end up with a bad ass pro saw after the job for less than buying a new consumer grade saw, and learn something in the process as well.
I already have some experience working on two strokes, mainly some general maintenance on outdoor tools, or building an engine from all new parts. Figured a saw wouldn't be that much different from a hedge trimmer or even a small two stroke motorcycle engine and went for it.

Finally found a nice used one from 2015 (Ebay) with an EL48 carb which ran ok WOT, but didn't idle well according to the seller.
So 99% sure an air leak, and fingers crossed that's all that's wrong.
So I ordered the tools needed for the job and pulled the saw apart to the point where only the jug and intake boot remain on it and did vac/pressure tests, which fail as expected. Clutch side crank seal is leaking, rest seems to be OK. Cylinder + piston look fine through intake and exhaust ports, only some carbon build up.
Going to order some small parts and a new seal today, hope to put the new seal in next week.
I'll then pull the jug and will clean that up as well, carb I've already taken apart, cleaned and reassembled.

BTW, this site is awesome! A wealth of knowledge has been shared, which has helped me a great deal so far in picking the right model/year, pulling the thing apart and finding what's wrong with it.
-----------------------------------END OF INTRODUCTION-------------------------------

So, onto my questions.
This saw was DIRTY, and while having everything apart anyway I'm cleaning it up.
The flywheel had a 2mm thick coating of sawdust and resin, so I soaked it in water + a few drops of detergent overnight, finding the following this morning:



I assume this doesn't cause much of a problem, as the magnets do the actual work?
But I'm wondering; what exactly is this layer that's rubbing off, and how do I proceed from here?
I thought it was just the actual magnet being exposed, but seems to be something else.

Would like to know if I need to / can do anything before putting it back on.

 

[Andyshine77]

I believe it's just a layer of oxidation coming off, I wouldn't worry about it.

 

[pioneerguy600]

Magnets rust as they are made from steel, lightly sand off the rust/oxidization as mentioned above and apply some light oil, the magnets really don`t need to be totally shiny.

 

[chopper88]

Thanks for the responses.

I don't even have to sand, rubs right off with a soft nylon brush.
I know magnets oxidise but have never seen this before, have only seen either brown rust or this smooth dark layer not knowing it was oxidation.
Then again, I've also never soaked a flywheel before...

I'll clean it off completely and will apply a tiny drop of oil afterwards.

 

[Sepia]

Before installing your new clutch side seal, inspect the bearing closely for wear and ensure the outer race is tight in the bearing pocket and cannot spin. Also a good idea to replace both seals while you have the saw apart and flywheel off.

 

[chopper88]

To be honest, I'd rather not mess with a seal if it isn't leaking. I do not have a decent seal puller, and am kind of weary of damaging stuff while I didn't have to. I'm still debating whether to use a pick, or sacrifice a screwdriver to make a tool. I've read just about any thread there is on what tool to use for this. Wish I could get the Stihl puller, but that would make no sense in my situation.
When I pull the clutch side seal, and discover something is wrong, the other one goes as well though

I do get the advice, now would be a good time to replace anything subject to wear and tear.
I've already replaced a dozen small parts I ordered together with the tools to be able to perform vac/pressure tests, and have also just ordered a piston ring as well as exhaust and base gaskets along with the seal, since I'm opening it up anyway.