So .. the blueing on balance wheels can come from heating the wheels during factory installation of the crankshaft, and does not necessarily mean a connecting rod bearing is burnt.
What made me disassemble that far was an almost total seize which would not let go. Finally, after I had left the carb hanging off the engine for several days I looked at the circular gas filter on the carb, and found oozey white stuff on the intake side and dry white powder on the other side. This, a Millwright tells me, is probably lime, either from water in the gas, or just lime in the gas. Gasoline, he says, can be and often is just chock full of impurities. So the filter cleaned, the engine reassembled with gaskets cleaned and bottom gasket sealed and properly cured, the engine is at almost full power. I also had urn a steel coat hanger wire through the small diameter tube in the muffer, that tube fitting ahead of the baffle tube. I hope for full power as my rings installed this winter may not have had time to seat totally yet. One lesson, a torque wrench would not have allowed me to crack the copper gasket on the head.