I would do it. The cost of tools is minimal and a "one time" investment. Given the age of the bike it needs more than a $50 tune up. What it really needs is a the bearings repacked, brake shoes, and possibly new cables.
Here are some other sites for advice, not to mention The C&V sub forum.
http://www.mytenspeeds.com/My_TenSpe...t_Contents.htm
http://www.parktool.com/repair/
http://www.sheldonbrown.com/