Well, my first thought is that you should give it a chance.
The Krag is an amazing rifle. Work that bolt . . . oh, suuuuuper smooth! Open the magazine, and try to understand the f'ing black magic involved in making a cartridge go in the right side, then somehow make its way under and around and in from the left! WOW!
And it's just as fun to shoot. Powerful enough to have some serious stopping power, but light enough that you can comfortably shoot it for a while -- less than a .308 or similar.
It really is a fun rifle, and a fun cartridge. If you have ANY interest in it at all, give it a try!
It sounds like your Krag is unmolested except for the scope drilling. If it were straight-up unmolested and in good condition, I'd be looking at maybe $800 for it, give or take. With the scope drilling, you probably need to knock a couple hundred off of that due to lost collector value . . .? Something like that.