OK... I'm going to bite the bullet, and tell you guys the truth. The reason I'm so interested in this blade is BECAUSE of it's flaws.
I'm an amateur polisher, and have been working on blades for a few years. This blade is ideal. It isn't worth much (as most of you have so kindly pointed out), so it's perfect for practice. I've never had to correct such damage, and truth be told, I'm going to have to make some serious compromises when redoing the shape.
At $400, it's not a bad deal. To top it all off, it comes with a great looking tsuba, old fuchi, and what looks like some kind of copper koiguchi. Also... the mei is really well cut, and since most of my other blades are mumei, or modern, I'm really looking forward to studying that.
What I said before is true as well. One of you talked about destruction testing... No... When you take the sword to stone. That's how you tell how hard the sword is.
I'll reshape the blade, and test the hagire to see how bad they are. If they aren't too bad, most likely I'll convert the blade into an iai sword. Otherwise, it'll be just a wall hanger.
That's the truth gents...
Let the flaming commence! :D