No expert here, but I like 1911's. Sorry it didn't turn out to be what you thought it was...
I didn't catch the front sight or grip safety, but I would have said that the bushing, trigger, mainspring housing, and of course grips are not original, and as you meantioned, it should have been blued or nickel, not parkerized.
As far as I can tell, it should have originally come with the collet bushing, which was introduced sometime around 1970 and phased out in the Series 80 guns in the late 80's. I don't believe the original Series 70 triggers from that era had overtravel adjustment, like
this one. The mainspring housing should be arched and serrated like the M1911A1. I believe the original grips were fully checkered walnut grips (i.e. not double diamond) with the Colt medallion inset in them, like these:
http://www.gunbroker.com/Auction/ViewItem.aspx?Item=203873927 (unfortunately this particular auction has ended)
and
From the serial number, I agree you are in the right range and believe it would have been one of 29,008 made in 1979:
__
Serial Number Range____
Year_
Number Made
S/N 01000B70 to 30008B70 1979 29,008
S/N 30009B70 to 72989B70 1980 42,981
S/N 72990B70 to 99999B70 1981 27,009
Most of the above and some other good info available at these links:
http://www.sightm1911.com/lib/history/s70_colts.htm
http://forums.1911forum.com/showthread.php?t=15201
and a review of the Series 70 that was reissued about 8 or 9 years ago with some comparisons to the originals:
http://www.m1911.org/prodte26.htm