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Sort of correct. You can change ammo-type with someone who has a high-enough explosive skill. So you can "upgrade" 9mm regular to 9mm armor piercing and such.
Edit:
To clarify, you also need to be in one of the map squares which allows both creating explosives and ammo. So you do it through the world map.
You can't sell unwanted items and I wouldn't advise it. Everything you don't need scrap for parts. There is option to sell parts for $500 but I think it is a trap for players.
You need all the scrap parts that you can find. You use it to repair your equipment, you use it to craft ammo and explosives, and most importantly you need parts (as in hundreds and hundreds) to upgrade your weapons with modifications like scopes, better precision and slower deterioration.
Keep a few spare weapons just in case, scrap every other weapon you don't need.
looks good, wlll give this a try