When I first saw the barrel covered in rust, I didn't think there was much hope for it. However, it all turned out to be just a light surface rust that surprisingly, cleaned up rather nicely with some light oil and a fine wire wheel, and left most of the bluing intact and no pitting whatsoever. Swabbed the bore out a few times to get the dust & crud out and found that the chromed bore was near perfect. All the numbers matched on the parts that were there and the stock (not perfect but in decent shape) still had the original cleaning rod in it. All I had to work with was the barrel/receiver with the aircraft sights and both bands still attached, the complete bolt, and the stock. Everything else was stripped off or missing; all screws, nose cap, hand-guard, trigger guard with mag. and follower, butt plate, rear swivel, tang and receiver screws.
I did some research on the serial number and it does appear to be a 1st series Nagoya arsenal rifle. (Salt Flat, you got a good eye!) My guess is it's probably late '39 or early '40's production. No import marks anywhere so I am assuming it was a war bring-back souvenir. Am going to try to find out who lived in the house and who may have owned it or brought it back. Probably put more time & money into it than she's worth now but I hate to see a piece of history like this go into the trash.
Now looking for some 7.7 Jap ammo to try it out at the range but the only stuff I can find at my local shows is $2.00 a round (which I refuse to pay). Will keep all posted when I take her "out for a spin".....
Thanks to all for your comments & support! --728shooter