Looks fine to me, pitting would be bad, but if not too deep LEAVE THE RUST ON IT (i mean if its really big chunks of course take it off) but this will help give you a heads up on when its time for a valve adjustment.

__________________
Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?

As long as they would add one additional commandment for you to keep thy religion to thyself.
George Carlin (Wonder where he is now..)

1981 240d (engine donor 1983 240d) recently rebuilt engine hurray! - No more.. fought a tree and the tree won.

pearl black 1983 240d 4speed (Converted!@$$%) atleast the tranny was rebuilt.