I would definitely send the head to get resurfaced . Its a big headache saver for close to $100. And can be done same day at most machine shops. Alot of the time ill bring them new valve seals and have them Hot tank it, replace the seals and deck the surface.
If this is a DD I would say get a new block. They are all over the place. And as Steve said, it would have to go to the machine shop to get not only the scratches but also the pitting out. Then you have to order parts accordingly. Which can take a decent amount of time, and will probably be more...
I bought both ebay and rock auto front and rear mounts for my 1g. One set from each seller killed both sets fairly quickly. SO if you're trying to save some money get the prothane not, very easy to do and you will save time and money in the long run.
In the video it's sounds like there is an exhaust leak. I would take the sheilds off and check to see if the previous owner maybe put some muffler puddy (or something like that ) on the pin hole. That stuff can be burning off