Rob, you could do that, but I would preserve the original paint, if at all possible. If the photo you show reflects the overall paint condition, I would go for reconditioning over repainting. You can apply petroleum jelly to the paint and let it set for several days, preferably at mild or warm temperatures. This helps to "rejuvenate" the paint and blend the rust spots in some. Wipe off the excess jelly and the paint should look better, as would the the whole scabbard. If there is loose paint, you should remove the jelly completely in those areas, using lacquer thinner, acetone, etc. (test first!). Then lightly spray those areas with a clear coat that matches the finish of the existing paint. If you are unhappy, you can always then strip and paint the scabbard. Given the age and patina of the hilt, I would not clean it. Unfortunately, a repaint of the scabbard will look garish next to the sword. Most collectors prefer "original" over "restored," except in extreme cases.