Can bolt handle be straightened? - It should have a bent bolt, not straight
What stock should I look for to be period correct? - it would be a laminated beech, cupped buttplate stock.
Where should the bayonet lug be? On barrel or band? - the bayonet lug was attached to the front of the stock.
What barrel bands should it have? - should be stamped bands. I don't know if this is late enough for welded bands.
What front and rear sights should it have? - should have standard Mauser sights; front blade sight and the rear is a graduated (graduated from 100 meters to 2000) ladder sight.
honestly, this thing sounds like it's in pretty rough shape. it might end up costing more to return to military spec than it's worth.