General Cycling Discussion - Did I buy a lemon?

Hi everyone,

I'm a bit new here and am a total bike noob.
I say this because I bought a repossessed Roadmaster Mt. Sport SX from a police auction.

The bike looked to be in great shape, and upon further inspection, the only visible flaw was PROBLEM 1: A broken right pedal which was somehow bent downward at an angle (not perpendicular) to the crankarm. PROBLEM 2: the back wheel was warped somewhat.

PROBLEM 1: After a little bit of work, I took out both pedals to be replaced (they seem to have been rusted over a little, but the bike doesn't look too old. It was probably left in the rain).
I didn't realize that while I was putting in the new right pedal, that the inside was stripped; I figured this out the hard way by having my right pedal fall out while riding.
PROBLEM 2: I tried adjusting the spokes, and bending the rim of the wheel, it's improved but it still rubs the back brake.

My question: I paid about $50 for this bike, a bit of an impulse buy. Is it worth it to keep fixing it, or would it be a waste of time and I should just get something new?
I plan on using this bike for class-to-class commute (not home to campus) and light recreation. So as you can tell, I don't need anything amazing.

Thanks guys,
if you want more info the bike don't hesitate.

It is a 80 dollar Walmart bike. I wouldn't spend any more on it.
Try putting it in the yard sale.

http://www.walmart.com/ip/26-Men-s-Roadmaster-Mountain-Sport-All-Terrain-Bike/13398147

Waste of time. You could have bought it new for $10 more!
http://www.walmart.com/ip/26-Men-s-Roadmaster-Mountain-Sport-SX-All-Terrain-Bike/8399256

Had a similar bike from Walmart. Tried to fix it, but there is absolutely no comparison to a good road bike.

I'd only fix it if you have access to low/no cost used parts like an old donor bike. Consistent with the spirit of the previous advice, it's probably time to cut your losses.

Dang, another one went down again.

What everybody else said. On the other hand, you want something to ride around campus. It's perfect for that--no appeal to thieves, you can lock it with a piece of string, and if something happens to it you're no tout much. I'd keep working on that rear wheel until it's rideable, then use it until it died.

I hate auctions. People start competing with each other for junk. Maybe somebody else comes out okay, but I've left them alone for many years.

Thanks for the tips