2 512Ks w/ dead floppy drives - course of action to repair?

I just came into two 512s and sadly, both floppy drives don't work.

Once drive accepts a disk, tries to read it, and then spits it back out. I can boot the machine with an external floppy drive that I have, so I know the floppy and the machine are both good. It's the internal drive that for some reason isn't reading disks.

Drive #2 is far worse. The Mac wasn't properly stored and there is a lot of corrosion on the inner frame as well as some on the floppy drive and logic board. The Mac still turns on and asks for a disk. The floppy drive has a little rust here and there and looks like it needs to be greased up a bit since the action is very tight. It doesn't appear to be doing anything. It think the motor is dead. I do see the 2 LEDS inside light up in red, but the motor doesn't spin up and it makes no attempt to read a disk when inserted.

So it looks like Drive #1 may have a small chance of being repaired. I think Drive #2 is a lost cause.

Any suggestions on how I should proceed?