Hello Chris, and welcome to the forum.
Another vote for: Do not repair the damaged barrel. Replace it. Acquire the missing parts and you should end up with a nice shooter and family heirloom.
An experienced Luger gunsmith should also take a good look over the rest of the Luger to make sure that there hasn't been further damage. It's likely that the hole is a result of an amateur attempt to demil the gun. Perhaps a family member that didn't like "something dangerous" being around the house. Of course, this created something more dangerous... at least until properly repaired.
Once it has been repaired and gone over, you should have a functional firearm. Take the time to get to know how a Luger operates, and how to properly clean and care for it. The replacement barrel eliminates reduces it from a collectible firearm to a shooter grade, so go ahead and shoot it. Just use standard velocity 9mm Luger ammo with 115gn or 124gn bullets. No "Nato" or "+P" rounds...
Marc
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Igitur si vis pacem, para bellum -
- Therefore if you want peace, prepare for war.
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