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That's exactly what my M1A looked like when I got it. I added a GI walnut stock, bedding, NM flash supressor with bayo lug, unitized gas system, hooded NM rear sight (yours most likely already has a NM front sight), a little trigger work plus handloads makes that thing one of my favorite rifles to shoot. Very accurate too, around 1 minute is fairly common.

As said already, you realy can't go wrong with either choice.