4.5/8" between the flanges, how big are the treads of the wheels? A locomotives wheels don't ride on the radius of the flange or they would ride up the rails and derail, they sit on treads, so long as they are wide enough, and the back to back of the wheels are correct it should be able to run on 4.3/4" track. But you are correct British and American track standards differ slightly.
The boiler is a smithies type boiler with water tubes into the firebox, instead of fire tubes. the hot gasses pass around the outside of the tubes and the boiler within an outer wrapper. the smokebox will indeed be functional and sealed to maintain draft, the blower serving a vital function to draw the fire and thus heat through the boiler. The type of boiler alone suggests early construction as around the 30's-40's people were already starting to switch to a proper locomotive boiler with water tubes and a wet firebox, where the firebox has a layer of water between it and the outer firebox wrapper. The battle of the boiler faught out between Curly (Lawrence LBSC) and Greenly (chief draftsman and engineer at Basset Lowke) and the public face slapping of each others work saw to that.
The link motion looks absolutely fine but the proof is in the pudding, would it run after a clean up. all the old dust and oil needs wiping away and a fresh coat of oil applied to all surfaces underneath to keep it in great looking form. Does the lifting arm clear the axle pump by the way as from the photo it looks decidedly tight. Obviously do make sure the boiler is tested to make sure its safe first.
I do have to wonder if its scaled up from a 2.1/2" gauge engine plans, as that boiler with meths firing doesn't tend to find its way into a locomotive of this size, usually they are fired with anthracite and a proper locomotive boiler as described above.