O.K. Here's the knife after an aggressive session with 0000 steel wool and mineral oil.
I doused it with oil overnight, and used a dental chisel to scrape off the scaly rust. The soft chisel doesn't scratch the blade - I love that tool! Then lots of rubbing with the steel wool, and oil. I also doused the bone, and rubbed it lightly. I am not going to do the insides, or other details at this time, but will keep a good coat of oil on everything.
I followed John's advice and after a few straightening swipes at 90 degrees, I sharpened a very blunt angle just to give it a decent edge. One chip was too deep, and I didn't want to lose that much steel.
As you can see, the pitting was pretty bad. I am not sure I have done the right thing, but the knife does look better to my eye.
Have I erased history?? Some, for sure. But to me, the rust represented neglect, so for better or worse, I intervened. If the knife were 50 or 100 years older, I probably would not have touched it!!
I put both pics in for comparison.
Please comment, as I am interested in all opinions!! I won't feel insulted, so spill forth if you will

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