As far as I know you would need the action milled out to hold the longer mag box and follower. If you were to only use as a single shot you wouldnt need to have anything done to it.
As far as reaming out the chamber manually..... Ive seen the tools, but have never used them. A lathe would definitely hold much tighter tolerances than doing it by hand. I would much rather have a good smith do it on a lathe.
Actually, I would have a smith do a new barrel if it were me, I think youll be better off in the long run. You could part out the rifle and keep the action and help pay for the new barrel.
I think the choice of cartridge is a screamer....AI version should top the 240wby.
Good luck and keep us posted if you decide to go that route.
Scooter
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