Looking Good, Andy. I've been following this thread since before I bought my Muir Woods, and it looks like you came to pretty much the same conclusion I have, decent frame, good geometry, lousy components. Keep us posted on how you like it with the drop bars.
I'm getting ready to repurpose mine into more of an all-terrain touring bike, I'll start my own thread with pics once I make some progress, I am still in the plan and gather parts stage.