Brian,
Welcome to the bbs. I hope you continue to drop in.
MD is correct as always. The modified Diana was a registered trade mark of Henri Pieper. It has nothing to do with the later Diana grade produced by FN, unfortunately for FN.
Here is an original Diana. This is based on Pieper's 1881 patent. Essentially, Henri Pieper invented the Demi-Block or Chopper Lump method of joining barrels to the breech. This one has 2 or 3 crolle damascus, a much higher grade than twist.
He later revised it to the Modified Diana and received a new patent in 1892. Notice the difference in joining the barrels to the breech. This one has twist barrels.
Laminated Steel means the barrels are not made from fluid steel, but rather from a steel ribbon that has been wrapped around a mandrel while red hot and forge welded, beaten with an hammer on an anvil. Laminated steel barrels were the cheapest, ie lowest grade, available at the time.
I would let it sit on the not very knowledgable dealer's shelf. You can purchase a gun in much better condition. Look for one with Krupp barrels and both hammers.
The very highest grade of Pieper guns has some gold inlay work.
Pete
