The original 2X2 had VG on it! I asked the dealer, also a friend of mine, to ignore the grade on the holder and tell me what he thought. He was thinking VF and said yep, it's a decent VF. I don't think the market value/grade of the coin could go much above a nice VF (choice?) grade due to the poor strike, but there's not a lot of true wear that I can see on the coin and it might technically be an XF. It has a coppery color, but I don't think it has been messed with (although I guess anything is possible).
I blew up the date in my hi-res photo and it almost seems that something's under the "5" but I can't really tell. Based on how it looks in hand, I really couldn't classify it other than a plain 1865.