I have a 1987 Fuji Palisade frame right now and some parts left over from an older Fuji. Definitely nothing wrong with it. I probably have $300 into the bike. Definitely worth it because it's very reliable transportation. Look like your Fuji is in pretty good shape. The wheels look pretty clean. I'd say $150 was an exceptional deal.
Great bike for Sunday picnics or riding to work.