Skeeter,
A little battered? yes but hidden within is a nice rifle with a little diligent cleaning (different than refinishing). I recommend instead of grinding the cases, have your gunsmith make a simple die to force the remaining cartridges into and size just the bulge to the diameter necessary for them to chamber. The fired cases should be all saved, with the least damage possible, they are precious. You are very lucky to have inherited the rifle with ammunition (which will supply cases) and loading data which you know will work. Be sure to clean and lubricate the bulged area of the cartridges before sizing, to avoid sticking in the die. After a good cleaning of the chamber and cartridges, they might chamber with a little bit of force with your fingers (no hammer), the bulge doesn't seem to be too serious.
Mike