What to do?

[no4mk1t]

So I have the opportunity to buy this Luger from a co-worker.

From what I've read, it appears to be a 30 cal. commercial circa 1926.
All the parts that have numbers match, except the magazine. It has a black plastic base and is marked Erma. (I'm guessing the mag dates from the 60'-70's?)
The barrel is badly pitted.
There is just a hint of straw on those parts.
The grips are intact with some wear down by the screw.
There is some rust under the grips and in the mag well.
I have not fired it, but it seems to be in decent shape except for one thing. If you cycle the pistol and place the safety on "safe" and press the trigger, then move the safety to "fire", the striker will fall without touching the trigger.

So my questions are:

I figure this to be a shooter being its condition kinda kills any collector value.

What is it worth?

Rebarrel to 9mm?
I load for this caliber, so this seems to make the most sense from a ammo availability standpoint.

What needs to be done to fix the safety issue?

I was thinking of a good cleaning in the ultra sonic followed by an electrolysis rust removal bath.

I have done rust bluing and nitre bluing for a Krag project, so refinishing is possible for personal gratification if nothing else. Getting the straw color just right would be a neat challenge.

Give the grips a good cleaning.

Here's a few pics.