You might also be able to force the piston out using an air compressor. Did that when I re-build the ATE's on an R90/6. The piston had some rust on it, but no pitting. Was able to use some 0000 steel wool and cleaned it up nicely.
The only problem with removing the piston is that I needed to replace the dust seal, as replacing the piston was pretty much impossible without sliding the dust seal on it first. I destroyed the first dust seal when I pounded too hard on the plastic block that I used to seat it and the rubber tore just a bit. As it was just a dust seal, I probably could have let it be, BUT, it wasn't my bike and I didn't want to do that to a paying customer. So, I bought another seal and tried again. It is a very tight fit and needs to have equal pressure on the whole thing at the same time, or one portion will slide in perfectly, but getting the other 'side' in is impossible. And if you try to take it out and do it over, it will probably tear.
You'll probably have better luck and an easier time on yours, as you have the split brakes. They early ones are one piece and are a major PITA.
For repair parts, also try Capitalcycle.com They had ATE parts cheaper than other places. they also have an eBay store. (and its Capital with two "a". the proper spelling, Capitol, will get you to a m/c dealer...not the same folks)
Pretty sure this guy is a forum member, and his photos of the ATE rebuild kept my sanity (Thank you, Mr Valenti. The trick with the toothbrush worked great) . This is the link to the R65 he did:
http://s428.photobucket.com/user/gruntyman66/library/81%20R650%20Restoration?sort=6&page=0He also has a PDF on this site, somewhere, regarding the O rings on your ATE's. I did a google search and came up with this:
http://www.bmwr65.org/htdocs/yabbfiles/Attachments/SYNOPSIS_FOR_ATE_r4.pdf