Can anyone tell me the best way to restore this photo? The problem I'm having is removing the white speckles.

The best situation is to scan it so those texture artifacts aren't so obvious. A nice tutorial addresses the issue and that is what I would recommend you start with. To view the tutorial click: HERE (http://retouchpro.com/tutorials/?m=show&id=58)

Thanks Phil, that method worked great. I can't believe it was that easy to fix after spending all that time trying to get them out with the clone tool. lol