Edgar,
I have done this type of work and found it simple, albeit time consuming. First on the list after disassembly and degreasing is annealing, then the file and weld work, polishing, any engraving needed, then out for casehardening, since I don't do casehardening myself. If you don't have the skills to do this work yourself and have to pay for it, I agree, it's a money pit. For someone who enjoys taking something unusable and making it a nice thing again, it's a rewarding project that would not cost much to accomplish.
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