Searching for Damage

We have already been given two assignments in my Photoshop for Photographers course. The first is to remove and replace some features in a photograph of an Elvis sign. It is due on the 28th and I am pretty close to being done despite the fact that I have spent less than 20 minutes on it.
The second assignment is photo restoration. We have to find an old, damaged photograph, scan it in at 300 dpi (or ppi) and the resulting image must be between 5"x7" and 8"x10" in size, depending on the dimensions of the original image. Once we have it scanned in, we have to make it black and white (if it isn't already) and then restore the photograph. The assignment is pretty straightforward up til this point. The next part of this assignment is the exciting part - we have to colour the image! It is exciting to me because I don't currently know how to do this - I have a few ideas, but have never tried it before and don't know the best way to do something like this. Hopefully it will be something new to me and I will be good at it.
I am heading to my parents' house this weekend to go through some old photos with my Dad. Hopefully I will be able to find one with enough damage that I can get a really good mark on it.