I would not refinish it simply because I feel a handed down rifle should stay as G'pa left it. I have several guns from my Dad and all are exactly as he kept them. Sealing the wood and protecting the metal can be accomplished w/o a total refinsh.
You can get a decent scope for under $100. Check on the internet auctions for buys on used mounts if you're not in too big a hurry. The sidemounts for this rifle are fine but may set the scope higher than optimum. You don't have any choice though due to the split rear ring. Weaver may be the only game in town. Check the prices at Brownells before paying through the nose at some local spot that will likely order the part from Brownells and cut themselves a profit.