It's #5 for me, minus the touch up paint.

My "overhaul" equates to this:

1) Receive bike to be overhauled.
2) Have a beer.
3) Strip bike to the bare frame, leaving the fixed cup & headset races installed if applicable.
4) Inspect the parts - compile a list of needed things. Place order @ niagra. Wait 3 weeks, whilst drinking beer and working on other projects.
5) Wash the frame/fork/parts with degreasers, car wash soap, or steel wool where applicable. Rinse & dry all parts. Then go over frame/fork paint with scratch-x, and then finally a decent quality car wax.
6) Polish shiny bits if I like who owns the bicycle.
7) Reinstall fork - double checking the headset for damage when replacing with new bearings and grease. Same goes for the BB install.
8) Overhaul wheel hubs, install new tubes/tires.
8) Start reinstalling parts - using new parts where needed. (Deraiulers? Brake pads, chain, cassette, freewheel?)
9) Run new brake cables & housing. Configure brakes. If a wheel needs trued, take it to the LBS. (I still haven't braved the world of wheel work).
10) Run derailuer cables & housing. Tune shifting.
11) Go for a test ride around the block.
12) If all is well have a beer and contact the owner.