Wow, that guitar is even older than my parents A stupid question from me: is this an acoustic or an electric guitar?
As for the action, I think what feels most comfortable to you should determine how you set it up. I guess that the neck profile (if they are different) also affects playability if the same action is used on the two guitars.
As for the bridge, is it like this one? A gap between that and the top of the body would be quite alarming for me, to be honest, from a structural aspect if nothing else.
Also, nitro finishes were discussed in a few threads:
A stupid question from me: is this an acoustic or an electric guitar?