David,
All in all you have a very well taken care of Parker. It is well used and all that wear was with your grandfathers hands. I would not do a thing to it other than have the dent in the barrel removed (if that is what I saw in the picture). Much more than that and it would detract from the value of the gun. Most everyone on this site has seen my fathers Parker and I will never refinish what my fathers hands wore off. Here is a picture and he received the gun new when he was a boy.
I would bet heavy coin that the barrels on your Parker have never been messed with. That is no one has skimmed the bores and taken away precious metal. With that in mind I would shoot smokeless loads with appropriate velocity and pressure. If you keep it around 8000 psi you should be fine. I would also bet your grandfather shot smokeless powder though it for years.
Kindest, Harry
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