Bicycle Mechanics - Will these components play nice together?

I've got a 1986 Raleigh Prestige that I want to upgrade. I think It has mostly stock components (Suntour stuff). It's got a double crank that seems to be in good condition and I have a pair of Shimano 105 wheels that I'm going to use.

What I want most are some indexed bar end shifters to replace the seven speed friction down tube shifters. I was looking at the Shimano 9 speed Dura Ace bar end shifters and thought that I might upgrade a few other components, as well.

Here are the components I was thinking of purchinsing and installing all together:

Shimano SL-BS77 Dura Ace Double/Triple Bar End Shifters (9-Speed)
Shimano CS-6500 Ultegra Bicycle Cassette (9-Speed, 12/27T)
Shimano CN-6700 Ultegra 10 Speed Chain
Shimano RD-6700 Ultegra Road Bicycle Rear Derailleur (Short Cage - SS)



will all of these components play nice together? Is there another combination of parts that will be cheaper/better suit my needs? I'm going with the Shimano components because that's the only company I have experience with, but I'm open to trying other manufacturers.

Thanks.

Possibly save a little dough by getting a 9-speed chain instead of 10-speed.

May also need to spread the rear dropouts if the frame is steel and the spacing is less than 130mm.

Assuming it is a steel frame, the wider rear wheel should squeeze in pretty easily. I do it all the time on steel. I typically run 9 speed on my vintage bikes.

+1 Pricey chain, you have cheaper options. Nashbar branded 9 speed chain is on sale right now for $14.99 (I have used several of these).

Yes, It's a steel frame. Is the rear wheel going to be wider because It's a 9 speed instead of a 7 speed?

Is the Ultegra rear derailleur worth the price?

9-speed wider than 7-speed? No, it's more of a cassette (130 mm) versus freewheel (126 mm) thing. But you easily can just spread the rear triangle by 4 mm.

Ultegra worth the price? Most people wouldn't be able to tell the difference between Ultegra, 105, Tiagra or Sora rear derailleurs. I think it's only a matter of a few more alloy pieces rather than stamped steel, and roller bearings in the pulleys rather than bushings. Myself, I like roller bearings, so it's worth it to me. Or at least to get a couple of aftermarket pulleys.

I think I'm going to go with the Ultegra rear derailleur. Should I go with the short or medium cage with the 12/27T cassette?