If you go to a good lbs you can get fitted (somewhat) and get other help you might need, plus a warranty. Also, everything will be new. You might have to spend a little more than $500, but I don't think you are going to buy that thing and ride it without spending some money on it, especially if you want to set it up like a modern road bike.

I also don't think newbies should buy used bikes unless someone helps them. Do you know if it will even fit you?

It also seems odd that it would have a quill stem if it was made in 2005, and why would the paint be "bubbling"?

I'm not an expert on Mavic rims but I think they stopped anodizing the brake track years before that.