Recoil Rob,
I once owned a similar early (but about a year or so later) .32-20 high-wall with a #1 full octagon barrel in excellent unaltered condition. For the first couple of years before the low-walls hit the market, pistol class chamberings were frequently built with #1 or #2 profile barrels on high-wall frames with the small barrel shank. As with many of my gun trades, I let it get away and wish I had it back.
Looking at yours specifically, It appears to be lacking the mainspring and the mainspring base and screw that go into that dovetail under the fore end. In addition, it appears that the fly and its retaining pin are missing from their places in the back of the hammer, and I don't see the adjusting screw that goes into the flat behind the trigger. I would hazard a guess that at one time the rifle wore a tang sight of some sort, hence the too-long rear tang screw. Finally, it appears that the fore end wood may be replaced or altered...in the picture at least, the front end looks a little strange.
All of that being said, this rifle is what a lot of us look for, a good candidate to build on without worrying about messing up an honest old complete piece. The small shank will mean that original barrels in #1 and #2 round and octagon will be available, perhaps from a low wall that would use that same shank. You MIGHT get lucky and find a fore end to match the barrel you choose and the existing butt stock if you are sufficiently patient. The missing parts I mentioned (if indeed they are not there) are all available new from Ballard Rifle Co. as repros (very high quality and fit!) and most originals show up from time to time on this board or on eBay. Looks like you have a great project rifle there!
Best Wishes,
Green Frog
PS Winchester occasionally used the small shank barrels for calibers like .32-40 and .38-55, so you don't have to feel limited to pistol class calibers if you decide to rebarrel, but nice .32-20 octagon bbls in #1 or #2 profile show up often, some with good bores, some needing lining. I would look long and hard at those if that rifle were in my shop.