Yes, it has been restored, at least to the extent that I can do it (new vinyl leatherette, stripped from a sketchbook cover, painted, scraped down to brass in a few areas, sanded and polished to the point of death, and etcetera).
This is the one that I was talking about, earlier in this thread, when I said that the vertical alignment of the rangefinder prisms (in that swing arm above and to the left of the lens) was sheer hell. If you take it apart, you'll find two prisms, surrounded by toothed gears. The gears have very fine teeth and you have to move them both, one tooth at a time, until you hit on the right combination, so the double images track side to side and not diagonally. If you somehow survive this without going insane, then you calibrate it horizontally, but that part is easy. Took three days of trial and error (taking it apart, moving a gear one tooth, putting it back togetehr and trying it, over and over) to get it right. After doing that, I didn't even want to look at it for about four months. I think it's working fine now though, because it is pretty much on track with measured distances. I finally took it out for a shoot a few weeks ago. I'll see how the film comes out when I finish the roll.
Most of the Moskva 2s (and all of the Moskva 1s) were made from seized Zeiss parts, but were apparently assembled by people who couldn't find their own asses with both hands and a flashlight -- most need a lot of work. By the time they had gotten around to making the Moskva 5s though, they had finally gotten their ducks in a row, even if it is a purely Soviet construction (the 5s are a LOT better put together than the 2s).
You're right about the lenses. Quality control was, to say the least, highly variable. The Industars seemed to have better quality control, such as it was, than the Jupiters though. I've heard that if you want a good Jupiter, you should buy four of them, because the other three will be horrible. If you do happen to get a good one though, they tend to be VERY good. I played it safe though and mine has an Industar. I'll find out how good it is when I develop the film. I know I have a good body, but I don't know about the lens yet.