William,
I disagree with George; who is a very knowledgable LP-08 collector on one point...that of selling this gun off as a "parts gun".
Since it has been in your family for many years with a link to a WWI participant and that fact that you mentioned the gun is all matching; I would suggest you consider having this piece restored by a craftsman such as Thor (Ted Green). And Hugh Clark could certainly make those grips look much better...
Since you have not laid any money down to acquire this piece, you would only be looking at some restoration costs ($ 600 to maybe $ 900).
You would end up with retaining some family history that can be passed on to your family and have a sound mechanical shooter that would look great !
Regards,
Pete... <img border="0" alt="[typing]" title="" src="graemlins/yltype.gif" />