The best way to get the flywheel nut off is to put a good meter or so of telstra rope down the spark plug hole to lock the engine, either that ot use a rattle gun.

Do not break the flywheel, they are propietary to the TAC

Yes you need to remove the cam from the crankshaft to get the seal out,

Dont bother honing the bore without new rings, they are already seated into the surface there, honing the bore will wear out the old rings quicker than they would otherwise.