Hey Domino,
I used to try to "buy local", but the dealers around here have multiple equipment lines and BCS gets neglected. They can sell a cheaper MTD Troy-Bilt a lot easier than a BCS on price alone. When I've ordered parts, it's a call to them, call back to me, call back to them, wait, wait, wait, get the wrong parts, call to them, call back to me, reorder the right parts, wait, wait, wait sorta thing. They mean well, they just don't know the machines. I've been buying exclusively from Joel for about a year now. Anything generic, like bearings and bolts, I still source locally.
Rust around the outside isn't good, but it is common. It's an indicator that the machine was stored outside or in a wet area. If it makes you feel better, you can clean it off with WD-40, but I wouldn't recommend greasing it. The WD-40 will burn off the clutch surfaces, but grease could make it slip bad.
I'm actually a transplant from Lancaster, so I don't know anyone from around here.
Bill in WI