klaw091, thanks for the input. I'm leaning towards just using the existing wheels for a while to see if I like it and to determine the gear ratio to use. I was thinking about using the 39 tooth ring with 16 cog in back or perhaps the 14, which would equal a gain ratio of 5.6 according to the online gear calculator.
If I like the conversion then I think I'll spring for the 700c wheelset and longer reach brakes.
Anyone care to offer personal experience with switching from 27" to 700c on changes in handling. I've read threads that poo poo the change and some that say it significantly changes the ride of the bike. What say you?
Thanks again!