Yes, unfortunately the rust spot on the frame is a weld. The previous owner had a "rough landing" at one point with the result being the forward engine mount lugs (on the crankcase)broken and the frame bent. The frame was straightened and re welded, but I'm going to have to be creative on the engine mount side.
As far as "proper goes" I plan on going mostly stock and upgrading a few components for reliability and durability. I'm not a fan of the blue frame so that is the first bit that is going to change.