Chris, there is certainly going to be a significant cost in getting the watch up and running again and cosmetically correct.

There is potentially a third way between selling it and paying out on it though. As long as the bracelet is not overly worn or stretched and still has its original Heuer clasp, there is significant value in that alone - if you like the watch enough, you could just sell the bracelet and probably make most of the costs of restoration back. Have a look here for how much a Carrera version recently went for: http://www.chronocentric.com/forums/heuer/index.cgi?page=1;md=read;id=50346

Now, that's an exceptional amount and I wouldn't expect that much but you should be looking at covering most of the costs of restoration, potentially all of them. Given the watch isn't running and we can't see the movement, the bracelet is probably making up a good proportion of the value - bear that in mind if you sell them together too. As it's a non-runner, you're probably better off selling it somewhere like the ChronoTrader forum here than a general market like eBay; enthusiasts are probably more likely to make that value judgement in favour of the watch. In any case, you probably want a few more photos showing the back of the watch, the side with crowns and pusher and the bracelet. That will best assist potential buyers and probably make you a bit more too.

Best of luck with whichever route you decide to take!