Chainsaw Repair

Draconian?  I'd prefer the term realistic, based on many prior observations.

If the piston is that bad, then the cylinder is most likely also toast.  That saw most likely has a plated piston and a bare bore.  Only a few models in that series had the 'normal' bare piston and plated cylinder. 

Plated cylinders can have aluminum transfer (from the piston) carefully removed.  Bare cylinders cannot be saved.  Been my experience that a Micro series saw with an ugly piston will have a VERY ugly cylinder.  Your best bet is to find a parts saw to pull the p/c from.  Will be cheaper than buying new parts here.

The K10-WAT carb kit can be purchased from any good small engine parts source (including any mower/saw shop).  The crank seals can be gotten from any Poulan/Husqvarna parts source (including your local Husky dealer).  530019059 is the part # for the crank seals.  They're about $4 each, and you'll need two.  They're not hard to change.  We can walk you through it.