How would you restore this gun?

The wood looks to be in reasonable condition to me. Use a light touch of steel wool to open it up a bit and the boiled linseed oil as mentioned. As for the metal....like the majority says, steel wool and oil. Make sure the action is clean and the bore is fit to use. Good luck with it. And enjoy the project.
 
When I ran my gunsmithing shop, north of 60, I dealt with a lot of rusted guns. Salt spray and neglect take a toll. That rifle is nowhere near as bad as some members think. Carefully cleaned up, it should be perfectly serviceable as-is. It just isn't a basket case.
 
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