bluedog,
your title says 'where to go from here', but in fact, you've already gone too far. so, where to go is back. your rendition is over-cloned and there are better ways to start out on this image.
first off, it's a marvelous photograph! it's also in somewhat poor shape. but, here are some relatively quick steps you can do to get it into a better shape where you can then work on some of the more detailed needs.
1. the image when scanned has put a LOT of jpeg artifacts into the image. those 8 x 8 sharpening blocks are showing up way too much here. you can either rescan with ALL scanner settings turned off (if possible), or run a jpg artifact remover on it after the scan. i'd prefer the former, if possible.
2. all that white mottling/specs/damage is going to be a trick, but, run polaroid's dust and scratch remover on it in fairly light settings and it will take out a LOT of it without ruining too much desired detail.
3. i'd also desaturate the image and work with it in black and white. you can add sepia toning at the end or do a blend mode to the original to get back the color if you wish.
4. noise reduction. neat image, noise ninja,
ps's noise reducer or
psp's digital camera noise removal. i use the latter. it is one of the best, if not the best. but use this sparingly; you dont want to blur the image.
5. curves, levels, and brightness/contrast adjustment layers. this probably shld be done as an earlier step since it will help to bring out detail.
6. 32 band gray plugin. i used this to bring up the darks a bit. you could also do it with curves.
7. dont worry about the background until you fix the rest of the image. also, there is some stuff in the background that you've removed that shldnt have been (to my way of thinking, anyways). that mirror over on the side, for instance, would be better to leave in.
ok, those are some preliminary steps to take before ever using clone/heal and those type actions.
this is a very complex image. you've got darks that are blown out dark and whites all over that shldnt be there. the artifacting is quite annoying and actually hurting the detail, particularly in the faces. but it's a great image and well worth restoring.
the image i'm attaching here is where i've used the polaroid plugin, desaturating with the Fast Fix plugin, curves and brightness contrast adjustment layers, and the 32 band gray plugin. i didnt even use the jpg artifact removal here.
those steps shld make your cloning job a whole lot easier.
craig