The hand protruding from the recoil shield needs to have good spring tension as well. Cock the hammer when the barrel is open and see how far out the cylinder hand protrudes from the the recoil shield and also give it a very light push and see if the spring is in good shape and has good tension. Be careful not to close the barrel and cylinder when the hammer is cocked as that may damage the cylinder hand.

As for the hammer, I would have to see which type it is. H&R made a few different styles of hammers through the years. If I had one it would cost $25 shipped. So like you say, a hammer that costs half the price of the pistol, if you purchased it for $50, may not be worth your time either.

One of those pistols in perfect shape is worth about $200. That pistols seems to have a shorter barrel then most I've seen. I think a 3" barrel length was standard, so that gives it a touch more value. The nickel finish also seems to be in really nice shape as well.

Can you post a top view picture of the pistol with the barrel open looking down above the cylinder stop area to the barrel break joint, where the barrel screws into the frame? I'm just curious to see what the area looks like.