Classic and Vintage Bicycles: What's it Worth? Appraisals and Inquiries - Paramount Series 2 value/suitability

Hoping to get some help. I've put on more weight than I should have allowed, so I started riding my old bike, a 90's Schwinn MTB, on rides to increase my fitness and lose some weight. I'm only riding on local roads (Hines Dr. for those local to Detroit) , and I've put in about 450 miles or so since August.

I've enjoyed it, and I'd like to get faster and be able to maybe join some group rides. I can average 14.5 mph with stops for lights, and have tracked 16 mph for a full hour when catching the lights.
I'm looking to get a used road bike, but don't have much cash available.
Going to look at the below tonight, wondering about price, and if it will suit my needs for riding and trying to join a few group rides.

Schwinn Paramount PDG OS Series 2 road bike

Shimano 500 EX premium components - integrated cable guides, precision butted Tange OS tubing - 14 speeds - SIS shifters on downtubes - 700c x 23 tires on Araya rims

I hate to do this, but I have to sell my vintage 1992 Schwinn Paramount road bike. It is all original with the exception of wear items, like newer tires/tubes and brake pads.

It has a few scratches here and there and a small tear on the back edge of the seat from general use, but is in otherwise very, very nice shape for a nearly 20 year old bike. The way these bikes were built, it will probably go another 20+ years without fail...

Frame size is 56cm - chart says it fits about 5' 6" to 5' 11", but I am 6' 5" and have no trouble riding this bike comfortably.

http://images.craigslist.org/3kf3oc3ld5U55P05R6a9b6614104c51501711.jpg

Two 1992 OS Series 3 sold in the Raleigh area within the last three months. They both went for $200. Both sold fairly quickly. Since the frame is by far the most valuable component on those bikes, I think if you can get it for that price, grab it.
I bought one of those OS 3's. After removing the grime, it's a 9.5 on a scale of 1-10. IF he's selling it for $200 in won't last long.

BTW, if he's 6'5" and rides that bike with no problems, he's some sort of medical miracle. No way a 6'5" dude is comfortable on the bike in that pic. Make sure it's not extra warm.

He is asking $290, wouldn't move much off that price, and although it is in good condition, I'm not sure what these retailed for and I'm not sure what it is worth. It's clean, shifts well, and clearly wasn't the sellers bike, he says it was his fathers, and it looks like it was probably in the garage hanging for the last 15 years. It could use a new seat, doesn't really need new wrap (looks like it was redone recently).

He clearly has researched it enough to know the history, although he may be placing value on the paramount name based on earlier Waterford bikes, rather than his newer bike. He indicated it was made in Japan, new when Schwinn went bankrupt, etc.

I'd hate to let it sit, but I may be better off waiting until spring.

What say you, oh wise men of the road?

I sold one in October 09 in SoCal. Same bike, 56cm. I would have kept it if it fit me, very nice ride. I did a complete tear down on it, new tires, cables, bar tape.
It sold pretty easily for $300 but it was very clean. The Paramount name seems to draw attention, even though it's only the 2 series. $290 might be a little high going into fall in MI. I don't know your market. Maybe wait a few days and if it doesn't sell make him an offer, if it fits you perfectly.
http://i41.photobucket.com/albums/e300/tmh657/Schwinn%20Paramount/Side_1.jpg