Order ammo on the internet, you'll save money and if you get new commercial (which it all will be, since milsurp for that rifle hasen't been made in forever) you'll have reloadable brass. If you want to start with brass, Chestnut Ridge Supply has some (http://www.chestnutridge.com/
The old Krag is a hell of a rifle. You've got a treasure.
You'll want to check out Numrich Gunparts http://www.e-gunparts.com/
The Manufacturer is the US Military. Being a gunsmith I deal with Numrich a lot and they are a class act. If you need stuff, they'll hook you up. They don't list an 1895 but most of the parts from an 1896 will probably work with minor fitting.
Since its kinda beat up already, you won't be damaging a national treasure by refinishing it.
Forgot to mention, I can't really tell condition by the de$cription, but if you haven't fired it yet, you may want to have a gunsmith check headspace first. It's probably ok but its nice to be sure.