Hi Wookie, and welcome to RetouchPro.
You've really got your work cut out for you with this photo!
I'm sure some of our members will have some great tips on how to go about fixing this, but I'd like to offer some suggestions to get you started on your own:
Check out "Photoshop Restoration and Retouching' by Katrin
Eismann, it's the best book out there on this subject.
Katrin's website
Look through the "Challanges" here. Most, if not all, have detailed instructions on how each was accomplished.
Look through the "Tutorial" sections here, there are some great time savers and tips.
Although my suggestions aren't step-by-step instructions, they should help you get started, and we can take it from there.
Vikki