Beanz got it right. You don't need a screaming road bike for RAGBRAI. If you're going to use the Peugeot, install bar ends to give you more hand positions, slap on some road tires, and ride it. Make sure you have enough time 'in the saddle' before July. If that's not enough of a change, then I'd recommend getting a low-end road bike from a shop. Changing a bike from flat bars to drops is a huge hassle and can get expensive if you don't have a ready supply of used parts.