Sorry I don't think it works. The processing is very good with the exception of really the saturation needs turning down on the original image, in keeping with the distressing in reality the media wouldn't be as bright.
However, the underlying image isn't great - as you said it's not sharp and the highlights are too far blown. I'd love to see the same processing applied to another image though as I think its quite clever, and would enhance the right image.
I like the pp on the background - what did you use to get the effect?
Fair point re brightness on subject - bit duller and grungier to get to old look feel maybe?
Looks like a retro postcard to me and for that I think it works.
Bob I've just been on your flickr, crikey with your bird shots I'm amazed this image isn't sharp! Some really nice work there.
In the interim, as I said you are onto a winner with the processing with the right image. I'd recommend using this image http://www.flickr.com/photos/34317878@N02/6037452837/ and dulling it down, maybe add a sepia tone and it should look epic
I quite like it, it looks old but not of the era, and as others have said, the flare off the canopy is too distracting but still a very nice shot