Hi Warren, chop, cut, weld, beat on, and modify to your heart's content. Looks like you got a nice example to keep your VFR company.
Sand, prep, paint only worked great for me but I am sure there will be other opinions.
Handlebar master cylinder plus extra front disc from a later airhead.
Keep points and add an ignition booster.
Don't know about rebuild kits in Australia. Lots of sources on this side of the world.
Take a look at the rearsets made by inmate owner of Boxer Metal - nice.