Nah. Don't plug anything up. The frame saver will do it's job. The bottom bracket doesn't look that bad, really. The bearing races and balls look covered in the proper stuff. Clean it all up, and put a new coat of the proper stuff on the bearings. It is okay, more than likely. If it sounds like gravel with it all cleaned up and the proper stuff on the bearings, then you need to start worrying about replacing things.