Hi PB
- the blade still looks ok...  but i'd stay away from the powertools..
-remove the blade from the hilt
- c-clamp it to a flat 4by4
- get abrasive Al/oxide papers from 120,220,320,400, 600 .. and not the cheep stuff
- get a very flat piece of flat stock steel...  maybe 3/16 thick, by 2 inch wide by 6 to 8 inch long.... and use this as a sand block for the papers..
any deep divots... do it by hand ....  if your fingers can't handle it.. then use a soft puffy rag between the Al/ox paper and your bar... it works aswell
take your time and maintain the original thought of the smith... concerning blade profile and such..
its a dirty, tedious, and repetitive task ...  but i bet you'll have a good bond with this blade when your done  
 
Greg