If I were in your situation, that sucker would be goin' down the road and I'd be in the market for something like a 38/55 that would be fun to shoot. I don't care how beautiful that rifle is, if it hurt me like that I wouldn't be considering it fun.
I wouldn't recommend having it rebarreled by Shiloh either, as I wasn't too happy when I did that. I had a really heavy barrel and wanted a lighter and shorter one. They quote 600 bucks, but it will cost you a lot more by the time they are done. I had to call them back afterward and pay seperate shipping to get my old barrel and forearm back...they admitted that they probably had it in the back somewhere...but "most customers don't want their old barrels back". I finally got it and sold the barrel and forearm on Gunbroker for 400 bucks. I suspect they have a market for used barrels.
I ended up paying over 200 bucks just in shipping with Shiloh before it was all over.