DRF aka Thrifty Bill
Join Date: Jan 2008
Location: The NC Mountains
Bikes: 86 Katakura Silk, 87 Prologue, 87 Cimarron, 14 frame school custom, 73 Paramount
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I would leave the paint original, do a rust treatment on the rusty parts, polish it up, and you will have a really nice bike.
I don't deal with cruiser style bikes, so no idea on value, but this is going to be a good/great one! I would buy it myself (perhaps at an over market price, as I don't know the value here), just to have a really sweet vintage cruiser.