Great bike to cut your teeth on bike maintenance.
It's probably worth $100 or so as is. These older Treks are well-regarded. Part it out and it would be worth somewhat more, but it would be a lot of hassle to market the pieces separately. Clean it up and have it in good running condition with fresh tires, cables, tuned, etc. and I suspect it would go for up to $350 or so, although the fact it probably has non-original parts hurts. Of course, it all depends on how effectively you market it.
So its really a question of whether you want a project or not and what type of project.
- Mark