I realize that time is on your side because you await the title papers and do not wish to invest money in something that may not be yours for the riding. I suggest you be patient and let the penetrating fluid work. May take a week or two. Your engine looks pretty well sealed up but may be worth taking the alternator cover off to check that the rotor isn't seized up with rust, this would make kicking over very difficult.
My first XS was rebuilt outdoors like you will be doing. Just make sure that you can keep things sealed up against the rain. I made the mistake of putting a nice shiny set of oil covered gears in a cardboard box thinking the oil would protect them. When I checked a week or so later the rust was just getting started. I should have sealed them in plastic bags. Also, get some foam pads to lay on the ground, they will make it much more comfortable for working on the bike, most of which will require you to kneel. A small stool would also be good for giving your knees a rest sometimes.
I currently have an 81 SH with the rear drum brake. It was jammed on hard due to the brake shoes having delaminated from age.
Good Luck and Enjoy.
