Stephen, you sent me a PM asking my opinion about what to do, so I will respond.
First, I like nice looking guns. Second, I like nice functioning guns. I concur with your belief that there is some oil soaking. You can test that by using a heat gun or a hair dryer on the stock and seeing if oil is pulled up. If its just a little, then keep applying heat until oil migration stops. If there is a lot of oil, then I recommend pulling the stock from the action and using alcohol, acetone, or some other oil solvent to remove the oil.
The solvent will remove the finish but IMHO, the stock needs refinishing anyway because in my opinion its not attractive as is . You can steam out dents, chemically remove the old finish and refinish it yourself. Seal the stock head when it is off. After all the liquid chemicals on the stock, you'll probably have to lightly sand raised grain. I think I see enough grain pattern under there to make me believe that this wood could be pretty.
If the pad is crushed, I recommend replacing it with a period correct pad such as a Jostams Hy Gun or No Shoc. It looks crushed to me. You can save the old one for historical purposes, but since the pad thats on there is almost certainly an add-on anyway, it would be inconsequential to me as a collector.
Clean the action well with Rem Action Cleaner, whether you remove the stock or not. Then lightly oil.
The barrels. I can't tell enough to recommend anything. Those twist barrels are attractive when they show lots of contrast, if no contrast, then they can look pretty dull. Compare the covered area under the forend and make your own decision. Dale Edmonds charges around $300 for a barrel refinish, I don't know what Brad Bachelder charges. Both would do a nice job.
And then an unsolicited comment. These 0 frame 16's can kick pretty hard when used with standard 1 oz 2 1/2 dre loads. They were intended by Parker to be used with 7/8 oz 2 1/2 dre loads ( see Parker Small Bore Shot Guns brochure) and I think Parker called it right. The heavier recoil of a 1 oz load would not make much difference for your shoulder for the few shots you get per day when grouse hunting, but it would for 50 or 100 targets. Since I don't know of any commercial 16ga 7/8oz loads, that pushes you into handloading or RST. I think those mini mags 1 1/8oz loads would push those barrels over the service load ceiling and close to proof loads, see TPS p. 515, and I would stay away from those.
Glad to help, per your request, and have fun with your new gun.
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