Choosing between a new barrel or a full action job on an old Mauser

A customer brought in a sporterized 98 Mauser with a shot-out barrel and a rough bolt lift. He only had $400 to spend, so I had to pick: a new Green Mountain barrel or a full action tune-up. I went with the barrel, figuring a fresh bore was the main problem. After fitting and chambering it, the groups went from 4 inches to under 2 at 100 yards. Has anyone else faced a tight budget choice like this on a military action?