Dragonflydf,
I think you're on the right track to do a basic restoration and I don't think you got burned and paid a great deal too much. You have an interesting rifle in good condition and rich history and you can shoot it.
I feel bad when any new enthusiast asks about a new rifle and some people immediately begin to pick it to pieces.
You have a great shooter that looks very good and you don't have a fortune tied up in it. We all have to start someplace when collecting and I think you did good, and better that most might have. Have fun, do research, learn from gentlemen such as Jon and the others, and most of all, have fun! (In that order!)
If you fall in love with Krags (or any other collectible gun) it's great to begin with a shooter grade and learn all that you can. You'll learn a lot as you go along, and later if you want to invest in a high priced highly collectible gun you'll have a background of knowledge and friends you'll learn you can trust to help you.
JMO and always -
Harlan