If you're going to be doing a lot of restoration, I'd like to recommend a book called, Photoshop Restoration and Retouching by Katrin Eisman if you don't own it already. While you are working with PSP, it should still help you some. I purchased my copy (edition 2) back a few years ago when I was working with PSP 7,8,9. The Eismann book is full of examples just like yours. I purchased edition 3 a while back just because I bumped into it for a cheap price at Sams Club.

While I don't mean to sway people to another site, again if "Restoration" is your thing, you might want to check out the "restoration form" on the following site:

http://www.retouchpro.com/forums/

You can post your work (before and after) and get some good tips from experts and novices. People post photos with some major problems to them and members try their hand at helping and give sugguestion (and post their own versions).

I've forgotten about everything in PSP these days, but your photo would be a snap to color correct and fix in CS 3.

(Would probably attempt to darken up the front part of the train, maybe even the left side alittle. The sky appears to be blown out. Don't know if there is any kind of contrast in the sky to work with. Am sure you could get a ton of good comments at RetouchPro)

If you can view the Eismann book you might find it of value. HAVE FUN!