Yes, the handwheels train and elevate the barrel, and the recoil absorber mechanisms all work as in the real thing. The barrel is made from a turned down .22 rifle barrel so it's fully rifled. The quick-lock, quarter-turn breech block is operated via the handle. The only thing that's unrealistic is the blocky structure on the breech block which contains the trigger mechanism and the firing lanyard.
It can fire .22LR. However, we have five grandchildren so the firing pin is removable and hides in the dummy shell you can see in some of the pictures. [Real ammo is kept in a gun safe.]
Here are a couple more pictures...
http://i81.photobucket.com/albums/j2...20GUN/gun5.jpg
http://i81.photobucket.com/albums/j2...0GUN/gun10.jpg