Looks like a paperweight to me. Nothing like throwing good money after bad. On the other hand, everyone should experience the ecstasy (and the agony) of building a Mauser sporter at least once in his life, so go for it if you wish.
As for sights, don't eschew old school Lyman/Redfield receiver sights simply because they have knobs on them. Go with whatever you find that fits your budget. Having owned and used more receiver sights in my life than Carter's got little liver pills, I never once had the issue of a "knobbed sight" letting me down in that regard.
