Tony M,
You're right. The outside of the ball/bell needs to be in good enough shape so it can be sealed and at the same time move/rotate smoothly. The inside of the ball does not have to be smooth and pretty (no one sees it

).
Use a new seal kit (NAPA and others can get them) and follow the installation instructions in the Shop Manual ("Universal Joint Ball Adjustment" in the Transmission section) .
Tim