Without seeing your bike its hard to say what exactly to do, but from your description it doesn't sound that bad. You probably can use something like WD40 to remove the seat and let the frame air dry. After that you probably need to replace the cables, chain, and brakes. Usually not that expensive or difficult of a job.

However since the bike is to small anyway, don't worry about it. I figured you might have been able to make do or at least learn how to fix it yourself or sell it. I bought my LHT from Trophy Bikes in Philly. When I was there they had an area where people could bring in their bikes and fix them.

Just scour Craigslist and see what comes along. Did you contact the two sellers from your other post? It'll probably be cheaper in the long run to get something used and in decent shape.