Here is a Sistema that I got with my C&R about 7-8 years ago. This is my first and only 1911 variant (read newbie), but recently I have developed an interested in the 1911 line. Anyway, here are its problems-

The magwell is so tight that no mag I have tried will free-fall. I have to pull the mag out with my free hand. Is there a fix for a very tight magwell? It is pretty damn tight.

The grip safety works "sometimes". Half the time I can pull the trigger w/o engaging the grip safety and the hammer will fall.

Finally, when I first got it I ran a few rounds of ball through it, just to see how it functioned...not well, major feedramp issues. I couldn't get 3 rounds to feed consecutively.

The finish is pretty nice, so I am assuming it was re-finished at some point?

So, should I just hold on to it, as is, and keep it as a piece of history? Or should I spend a little money, have it worked on, and try and make it a reliable shooter? I only spent about $200 bucks to purchase it.

Thanks.

Honestly I wouldn't put a lot of money in this old warhorse.  Many of the Sistemas I've seen have been pretty clapped out, and as a result not the best platform for a full custom build.  The steel tends to be soft as well on at least some of these.  If yours isn't too soft, it's probably OK to spend a few bucks to get it running well.  Realize that you probably won't get much of your investment back out of it.  

It all depends on what your smith tells you when he looks it over.  Fixing the feeding issue shouldn't be too costly unless someone has really done a Bubba job on the feedramp with a Dremel.  The mag well can be swaged out a bit with a die if it's really tight.  Make sure you don't have grip screws protruding into the mag well and dragging on the magazine.  The grip safety should also be an easy fix.

Get her fixed and shoot the hell out of it.  So if she gets worn down you'll miss her big time.

15 yards, Original barrel, free hand
I smudged out the serial numbers