Herb,
That is not really "severe pitting", more like advanced freckling, but Hugh is right that it should be addressed to avoid getting worse. If it is all over the gun I'm sure it is annoying, and it certainly affects this gun's value to a collector.
That being the case, be sure to take it to the range and shoot it. As you will see by the number of posts by those of us who shoot Lugers, they are accurate as heck and a great deal of fun.
--Dwight
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