I just finished rebuilding this bike. It rides and shifts really smooth. Here are things I did:

1) stripped the whole thing all he way down to screws and bolts. De-rust, grease and lubed everything. Previous people opened the hub before but they reversed the order of the clutch sleeve/clutch. After I got some shifting parts (shifter/cable, etc), it was not shifting but the indicator chain moves freely. I opened it up and found the problem so it was an easy fix.

2) Removed the surface rust and put two coats of clear coat.

3) Installed new brakes cable housing.

4) Put on a new kickstand and found some blue silicon grips.

5) DIYed a TravelPro Platinum tote bag so it can be hooked onto the saddle with quick release. It is a pretty big saddle bag and my frame pump can be put inside. It is very convenient so I can move it from bike to bike.