That Peugeot is in rough shape, and is low end. You will be over your budget by the time you have it ready to ride, and you will have an entry level bike. I suggest you spend some time on google, and get educated on what a good bike looks like, features, and construction, and then pounce when you see one. Any bike that lasts long enough for a "Hey is this a good deal?" response is very likely not a good deal.
As far as clean, ready to ride, decent to nice vintage bike, your budget is on the low end. The decent stuff around here brings $200 and up. I sold a nice one last week for $260, ready to ride, mid grade bike, in great condition.
The only way to get something pretty good and ready to ride at your budget is to get lucky. Lucky = look a lot, launch on a deal as there are plenty of other people looking, and be ready to do some rehab work yourself on it. That bike I sold for $260 came in a box, in about 30 pieces, and needed a complete, thorough rehab. It was quite a mess when I picked it up.
Before:
After:
