I don't see any damage to the head. Is there something I'm missing? The fact that the valves and the rest of the inside of the head is coated with oily carbon just means this engine has been running in a completely worn out condition for a long time. Unless there is something there that I haven't noticed the heads are now good project parts. They should be examined further by somebody, possibly the mechanic that will rebuild them.
I don't see any problems with the carburetor. This amount of blow by gases on the carbs is not even really bad. Looks like maybe they were cleaned sometime before you got the bike.
Put these parts on a shelf. Put the valve covers on the heads to help protect them. Be careful if you pack stuff in boxes that you don't break any of the fins on the heads or cylinders. Be careful with the rockers. Keep them on the short shafts because they have needle bearings in the rockers and you don't want to loose any of the small needles.
You can store stuff at this point in it's dirty condition. Stuff will get cleaned later if it is being reused.
I see the one spot on the piston that looks like it hit the cylinder skirt. Is there metal flakes on the cylinder skirt from the damage or is that just dirt? You should not be making stuff dirtier as you take it apart. Keep dirt out of the engine parts, even the parts that are no good. The cylinder is trash and the piston also. But don't throw any of the parts away, not yet. You don't get to throw the broken parts away until the bike is up and running again.
I do not see any damage to the engine block? Please point out anything I am missing and post another picture if you can of damage we are missing.
Your next step is to take the piston off the rod and take the rod off the crankshaft. This operation is explained in the manual. Ask about anything that's unclear. You will need at least the triple square socket for the rod bolts. I don't know if the wrist pins in a 1980 are wires or circlips. If they are wires they come out by prying one end out. If circlips you will need a good set of circlip pliers. Let us know what you have for tools and we'll suggest what will work.
Tools are going to be your new passion. It may seem that you are not getting enough use from some of this stuff but you have to get your own tools and you will use most of it again and again, eventually.
Use this place to buy special tools you need. At this point the fluted socket for the rod bolts is I think all. You may find this socket cheaper at some places like Sears and the Craftsman tool is strong enough but there is a thing about these special tools that you will appreciate more someday. The tools you need for this work are not the cheaper variety. This particular socket does come in a cheap version that breaks. So get the one from Cycle Works