Ok . . . After the initial panic subsided, I cleaned the machine with sewing machine oil and fortunately there was not much more flaking off of the decals. I've cleaned off the oil with lighter fluid and have started repairing the decals with gold paint. It is a slow pain staking process, but I am really encouraged by the results thus far. I am taking it slow and just working on little bits at a time, I want to make sure I get this right. I tested Testors' gold paint and the DecoColor gold paint pen and the DecoColor was the closest match. It is just a tad lighter, but you can only see the difference if you are closer than six inches to the machine, in very bright light. I think the difference might even subside a little after I get some shellac on it. I've found the best way to apply the paint precisely is to use a tooth that I've shaved down to a very tiny point.
It looks like I'll have to try my hand at French polishing, the decals obviously need protection and the finish of the machine is flat. Since I don't have another machine that I could practice on, I thought I would shellac a piece of metal, let it dry a few days and and practice on that. Fortunately, there is so much great information on this forum, I think I can do this. I am reading everything I can, taking it slow, and being very careful.