I would consider taking the hard copy you have to a professional to have it scanned with as much dynamic range as possible. The image you posted has almost no contrast between his face and the background, for example. A better scan might improve that, or at least provide enough additional value information to further improve it in Photoshop.
As for the banding, I doubt that can be corrected in the scanning process or by any other automated means. I think it's going to require someone going in by hand and manually erasing them. The whole image could be dramatically improved with some manual retouching.
I have been known to do this type of work for a nominal fee. Drop me a line if you're interested.