mgaleone,
Welcome to Retouch Pro! It's a good place to come for ideas and help when working on important family treasures.
We can help you better if you can give us some information about the photo and your current experience working with Photoshop and retouching photos.
Do you have the original photo in your possession? Was there any damage to the exterior of the image -- anything spilled on it or something like that? Is it a photo or a slide? Did you or someone else do the scanning of the image. Is it possible to scan it again and try to get a better copy to work with? Did you upload the original or a copy that you have already worked on?
The image looks like something has already been done with it -- I don't see dust spots (like all my old family photos have on them

) and there isn't much detail in the clothing. If this is a version that you have already started working with, it would be helpful if you could upload the original (unretouched )version. It's often easier to start from "scratch" than to work from a partly retouched photo. If this is the original scan -- what type of scanner was used? Can you scan it again and use some of the scanner tools to lighten the photo? Again, it is easier to work with the best scan that you can get and then retouch as needed.
What experience do you already have with Photoshop and retouching -- it helps us to know what steps you are already familiar with -- if you're a total newbie, then we know to explain in more detail; if you have a lot of experience, then we can list some steps and suggestions.
There's lots of folks here who would like to help you work on your family photo, and the more information we get (in the photo and about you), the easier it is for folks to get started!

I've tried working on the version that you submitted, but I haven't gotten very far yet -- I'll post my effort later, but I'm hoping that you have another scan that you can submit.
Well, this isn't good, but with a bit of the blur tool/healing brush, adjustment layers - hue/sat, color balance, selective color, levels and some other (I tried different things and don't remember all), it is a bit of an improvement. I'm really hoping that this isn't the original (or you can re-scan it) because there's something that just isn't right -- the red channel is best and usually the green channel has more detail, but this doesn't. Someone else may be able to get more out of it.