Originally posted by tynmdys ..It's kinda sad that with this nice lens and the perfect condition that it's only worth around $150 though.
That is just sort of the way it is. There are some manual film bodies from the '70s that retain greater value (e.g. Nikon FM), but for the most part prices are fairly low. Part of that is because almost all require some minimal level of service (new seals and calibration) to bring them to full functionality. The other aspect is that demand, outside of enthusiasts and collectors is relatively low. Your camera might be worth considerably more to the right collector on the right day of the week, but as a "daily user", the body by itself is worth about $45-$60 and the lens about $100+.
The idea of keeping it as a heirloom in memory of your grandfather is an excellent one. Learning how to use it is an even better idea!
One small tip regarding the case. I use a similar Pentax leather case for my model KX and found that it responded really well to being dressed with black paste-type shoe polish (Kiwi). The leather is very high quality and is not unlike the pebble-grain material used on quality men's shoes. The polish will renew the finish and provide a degree of moisture resistance.
Steve