1942 BYF PO8 luger

Earl,
* The "42" on the top of the chamber is the year this pistol was made; ie, 1942 as you have stated.
* "byf" was the assigned code for "Mauser". the manufacturer of this pistol for the German Army.
* The Serial Number of your Luger is "230 f". The WWII Army pistols were made in blocks of 10,000 pistols. Each different block was uniquely identified by a lower case alpha letter, in your example, the "f" block. In 1942, approximately 113,000 Lugers were made by Mauser. The s/n range used for Army examples was #500(no suffix) to about #149m. Your pistol may have been made in May or June, 1942.
* The Luger was replaced by the P.38 in approximately Nov., 1942. The last of the byf '42's were sold to Bulgaria(5000) and Portugal(4500) with the Army's approval.
* The "laminated" grip panels, which I assume are black bakelite plastic, predominately appeared on the byf '42's as walnut wood became more difficult to get and more time consuming to produce than plastic.
* The nickled body/wood base magazine was made much earlier than your pistol, possibly as early as WWI. The correct mag would be an "fxo" marked blued body/black plastic base mag. A few '42 byf's were still issued with a "fxo" marked, blued body, and Aluminum center pinned base; but, less frequently as these were being used up.
* The left side of your pistol should also show the numerals you listed above. If field stripped, the trigger, hold-open, & firing pin will be number marked.
* Sounds like a nice example and certainly one you should consider keeping given the associated family history.
* Trust this info answers a few of your questions.

Earl,
* No way to tell about the grips without seeing them through pictures, etc. The original P.08 wood grips were solid walnut with milled pockets and locator ridges on the inside. They were checkered on the outside as you see above. The Mauser wood grips had an outside profile (curvature) unique from other Luger manufacturers. Surf this Forum's posts & enough grip pictures are available to give you a template for comparisons.
* If the item is "Not for Sale", it is by definition "priceless"!
* Were you to wish a value, the context of whether a sale price, insurance(replacement) price, shooter's enjoyment, etc would be necessary.
* Collector's value is partially predicated on the degree of originality (matching #'s), retention of original finish(condition, condition, condition), and ready availability(supply). Without something like pictures to go on, the condition can not be determined. An importer's marked-100% reblued shooter can fetch about $500-$600. A pristine, totally original collectable example may command $1500 to the right buyer @ the right time. Incorrect grips, mag(s), etc will temper these prices.