Thanks everyone for your advise.

Regarding the stock:
I do think restoration is the way to go. My concern at this point, is that no matter what oil I use, it will darken the wood (as expected) uniformly and not blend the lighter water spots with the surrounding darker wood.
The stock is a medium light walnut that I really like. So, I would prefer not to use a stain to blend the spots unless there is no alternative.

Regarding the metal:
Wish I knew how to post pics.
I guess "surface rust" might be the wrong term. What I have is probably more like a very light pitting. there are 2 or 3 spots on the blued barrel and a few on the case hardened lever. All are about 1/8"-1/4" in diameter.
There is a gouge (no doubt from a fall against a rock) that is on top of the receiver, just behind the stamp "Savage Model 99", at the edge of the receiver opening. I didn't mention it previously, because if figured nothing could be done to repair it.
If anyone has any ideas, I would be happy to email pics for you to evaluate.
Thanks to all for your time and advise.
Fuzz