Originally Posted by
hairnet
A cable and housing change should free up your levers. Judging by your picture, you have too much housing for the front brake and rear brake's rear housing loop is too short. A slightly bent fork can be realigned fairly easily and is worth doing so you dont have to compensate for the bike's tracking by shifting body weight.
+1, The levers are fine. With new cables and housing, on top of [urlhttp://store.velo-orange.com/index.php/components/brakes/pads-shoes/vo-cartridge-road-shoes.html]new (grippier) pads[/url] and some
$10 hoods from veloOrange you should be able get that puppy working nicely for around $40. Once you've outgrown that level of conversion, and start thinking about dedicated SSFG wheels, it'll be time to think about a complete bike.
Treks of that era are very nice bikes- I have both a 610 and a 500, I've been impressed with both. Does that one have 27" wheels too?