Rob,
My recommendation is that you clean it the best you can with electrolysis. That method will remove the rust and old seasoning. Season the skillet a few times with Crisco or your choice of other fats, and then use it. It won't look look pretty, but who cares. Remember, new Lodge skillets aren't ground smooth on the cooking surface and they work just fine. With time, your seasoning will get better and better, but I doubt it will ever fully conceal the pitting.
That is an interesting story, by the way. Good luck getting it cleaned up and back in service.
Jeff