Can't help you with the original finish on that gun, but I used to live in Waterloo. I was not aware that Craftguard did Damascus refinishing. I know they did a lot of hot bluing, and people would often take guns to them for quick and reasonably priced work on gun barrels appropriate for the hot bluing process.
A Lindner Daly is a fine gun. If I were having it done, I'd go with someone who's an expert at Damascus barrel work. You might check out Mark Beasland at Mark's Born Again Birdguns here in Wisconsin:
www.mbabllc.com. Mark teaches Damascus restoration in the doublegun classes at Trinidad College in Colorado.