Stan,
Try posting on one of the Curio & Relic-oriented forums, such as Parallax Bill's or Gunboards, to see if someone might be able to help you scrounge some 8x50R ammo. If you reload, you can make the 8x50 cases easily from 7.62x54R Russian brass. The dies are the expensive part. 8x56 isn't exactly a common caliber either, so there's not much to be gained by reaming it.
What has been sporterized on the rifle? Just a stock cutdown, or has work been done on the metal too?
Good luck,
Steve