shaving off the mouldings and filling in that indentation is not something you'll be able to DIY unless you have A LOT of previous similar work experience. to fill in the indentation you need to spot weld sheet metal, then sand it all smooth. use a little bondo to smooth, then paint... BUT i garuntee it will not come out even close to something decent if you diy without previous experience. you will end up warping the sheet metal, cracked bondo, etc etc etc.. sorry to burst your bubble. but if you want it done nice, check your local shops. hopefully you know someone at a shop who can get you a deal

goodluck!
-Luke