if there's a cheip on the bearing surface of the hub cone, that's also called a pit, or scoring. The cones should be replaced. Wheels Manufacturing should have what you need, available at your local bike shop or bike tools etc online. Sheldon brown and park tool has articles on how to properly adjust hub bearings with quick releases. And soon there will be a flamewar on just this subject in the mechanics section...
MAFAC Racers are great brakes. We sell adjustable toe-in pads which makes setting up brakes without that feature a little easier. Otherwise you need to slightly bend the caliper arms so the front of the brake pad hits the rim first. There's plenty of online documentation on how to adjust these as well. If you still get a lot of chirping after toe in, it is either the steel rim or the pivot bushings. I don't know where to find replacement pivot bushings. Anyone else have suggestions?