I don't think that's such a bad deal. The frame looks like it'll be quite a bit of work but all in all I bet it'll clean up nicely.

Just be glad that the handlebar wrap wasn't cloth. This past Saturday I worked on an old 80s era Raleigh that is owned by a hardcore rider who uses the bike as his main mode of transportation and seems to be perpetually bathed in his own sweat. There was rust and corrosion aplenty all over the bike but the worst of it was the old fraying cloth handlebar wrap that reminded me of mummy wrap I'd seen pictures of in National Geographic and smelled like the part of underwear that usually gets lodged in the crack. I considered calling a hazmat team. The worst part is that he must not feel that replacing the wrap was necessary since it wasn't on the work order.