cleaning and painting my block

Couple of things going on here that I have some questions about.

1- I just had the deck cut twice, its now close enough to where I had originally asked it to be, machinest did not do anything either time as far as cleaning the block, it was coated with WD-40 and now its coated with metal from the cutting and WD-40. Do I need to bring this block to someone again to have it dipped cleaned or should all this be going away when i do my cleaning?

2- Ive got some areas on the block that are still rusty, I guess that when the machine shop originally cleaned all the paint off there was alot of rust hidden. Im wondering if there are any special precautions I need to take before I spot blast some of these areas ( Outside block ) Its bare with the exception of cam bearings and freeze plugs.

3- Im wondering if I can paint the block with my epoxy primer, then topcoat it with a base clear, I know engine paint says high temp, Ive got aluminum heads so not planning too paint them and I dont see the block itself really getting all that hot? Dont want paint to flake off either though.

4- From what Ive read I just need too sand all the gasket mating surfaces with some 80 grit, get out my pressure washer, some soap and go to it with some scotchbrite pads and bottle brushes, then coat the machined surfaces with WD-40 again. Any other recommendations?