Just noticed that this thread is still going, haven't logged in for a little while. Since I first posted I've shot the rifle many times. It doesn't have the smoothest action nor is it a precision rifle, but it really doesn't need those qualities and I don't expect that from a mosin nagant this old.
As far as refinishing the stock I agree it would definitely hurt the value from a collector's standpoint, but I didn't buy this rifle to keep in untouched condition and hang in a display case; I wanted to have fun with it and shoot it. The stock finish was chipping badly so I wanted to fix that. I do collect guns, especially milsurps, but I still want to be able to shoot every gun in my collection. An ex-dragoon like this one is definitely much less common than a 91/30 or M44, but it's not exactly a super rare collectible rifle either.
The way I see it I got a $200 mosin nagant that's pretty darn old, with a hex receiver (I had always wanted a hex), that is in good condition, that I can plink around with.