Jur - thanks for your valuable input, it is a lot to think about. My gut says a 12 year old used bike, even with significant upgrades, is worth less than one new and the bottom line is that I just don't know enough to feel comfortable without a lot more feedback. I'm also not especially impressed by using Reynolds 531 in the year 2000...steels have come a long way since 531, though the small size of this bike means the flex probably wouldn't be as bad.

I'm also nervous about the sizing...and think it might be the kind of bike you try before the buy.