the problem with the image is - its not worth restoring. the image itself is too badly damaged and her face isn't in focus. coloring only her clothes makes it look odd, like she's a ghost. the skin should have color as well. but it depends on the look your going for. if your going for what they would do then, then a faint layer of color is better. if your going for a color image look, then everything should be colored.
skin colors are light peaches, often the easiest way to get the color is to find an image on google and use that as your color palette.
---Mike Savad
MikeSavad.com