Hy cshamel, could you tell us what the housing is out of? For me when the pictures are so close it's hard to tell what I'm looking at. I think those grooves in the housing are there to allow the side bearing caps to just slip into the housing but still support them, they were machined that way. As to the pitting, as long as it's not in bearing fitting areas or seal running surfaces, I would just clean things up.