Those gouges are not good but can be smoothed out with a piece of emery cloth. They may have been caused by some previous owner pounding in the race with a misdirected blow. When you install the new race use a race install tool or gently tap it in with a punch.
If you have time throw the race in the freezer overnight which will shrink it enough to make installation a bit easier.
The crush sleeve can take a massive amount of torque to crush. As Clay said, proceed slowly because once it starts it can go real quick.