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Worth Restoring?

i could suggest meanwhile while you're working on the blade to put some wd in the pin it'll start cutting the rust and will come out black red as you turn the scales back and forth, keep wiping that off and putting fresh oil. it doesn't take much effort and will help, in fact if it's not too bad it can clean up the area completely in a week or two of such treatment.
Okay, so here it is after some 400 then 800 then 1000 grit.

It's not perfect, i'm going to have to go back and start over but it's alot better than it was.

Nice work. I wouldn't start over however I would try to get the scratches off and work from there. Make sure that you get all the scratches off from the previous grit before moving up. I have been really working on one right now and need to get some higher grit paper and some micromesh.