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Tim, I'm with Pete and the "send it to Bob Ridley" guys on this. There are other good restore/service guys in the states for vintage Rolex, but arguably none better. He restored my reference 1675 GMT-Master Rolex and has the reputation of being "the man" for vintage Rolex here in America. Since it is an heirloom piece, he'd be my first choice.
When you get a little more experience and want to branch out some, you can look around more but for this first one...Bob is the no-brainer. (And a gent to deal with, seriously.) I'd also concur that movement service and plexiglass crystal replacement is all that is desirable or necessary. Any more and you stand to lose value and the history of the watch.
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