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@moth
Are the derailleur and the shifter and cassette of the same brand?
Is the cable secured correctly - passing under the pinch bolt? (getting this wrong can affect the pull ratio) See eg point 2 of http://techdocs.shimano.com/media/techdocs/content/cycle/SI/2300/SI_5XA0A_001/SI-5XA0A-001-ENG_v1_m56577569830673817.pdf
When you shift into lowest gear (front and rear) how close is the upper jockey wheel to the largest sprocket? If there's a large gap, the b-tension screw may need loosening.
Are the Jockey wheels so old and worn that they flop from side to side excessively? If yes, replace, or dismantle and grind the steel cylinder bit slightly shorter.
Is the gear hanger (bit the derailleur is screw into) vertical or bent & twisted?
Is it just all grimy and in need of a good clean and fresh lubrication?