What you have found is pretty typical for used bikes. The things you want to do to it are just what probably need to be done. It should cost too much and you will probably enjoy the experience of working on the bike. The website below has a ton of great info. If you are not sure how to do something just google it and you should be able to figure it out. You can true a wheel its pretty easy you just need a spoke wrench. For the chain you will need a chain tool.

http://www.sheldonbrown.com/

I have little experience with the shock forks, but you can probably easily take it apart and rebuild it or at least clean it up. I just did that on a cheap fork a few days ago and it works fine. For commuting you can get a rigid fork pretty cheaply if you wanted to. Here is a link to the shock you probably have. You might need to look for some elastomers of they are no good on ebay because they might not make them anymore. Or you could just get a new shock. My 95 Diamondback has good elastomers still and its fine, but I am far from a hardcore rider.

http://mombat.org/Quadra2.jpg

I think you are going to be happy with the bike. One nice thing about used especially for commuting is its already beat up a bit so you don't have to be worried about it getting beat up a little more. Plus its a little less likely to get stolen if you are locking it up somewhere. Looks like your bike is 1994. Here is a link with specs to that year of bike.

http://www.bikepedia.com/QuickBike/B...+SHX&Type=bike

Anyway, enjoy your new project. Hopefully you can get out and ride it soon and take some before and after pics!