Thanks for the suggestions everyone. First, I want to clear up any possible confusion. The original wheels/rims of the bike are in fact 700c, it is imprinted on the rim. And yes it is also equipped with Weinmann 610 calipers, so wouldn't going with 27" wheels require changing out of the calipers? The brake pads with the current set up line up perfectly.
Also, as tom mentioned i am, in fact, starting to run out of time and grow impatient. I really wanted the bike in working order within the next 2 weeks. As I have a semester of school starting in about 3 weeks, and need it ready for commuting. Wouldn't be the end of the world if it took longer, but that was the whole point of getting this project going (avoiding public transportation spending). On the subject of impatients, i have been cruising craigslist for the past two weeks, but I dont think i really know how to nail down a deal this way. It seems like people never put enough info in their postings to figure out if the wheel will be a proper fit or not. I wouldn't mind some advice on the methodology there. For example, thanks for the idea of looking for complete bikes to part out. I dont know why i didn't think of that. Back to the time issue though, I would really like to get this going asap. But if anyone is willing to help me out for the fun of it. I am in Chicago, il., plenty of CL listings in the area i suppose, if you know what you are doing.
So i would really like to try building my own wheel, especially after being spitefully motivated by the mechanic at my LBS telling me that "it would not be possible, not to try it". I really would like to build one up and then bring it in there and rub it in his face... But due to time, i think the best approach is to get wheels that work for now, and then rebuild the originals as a project over time. I have found a site selling NOS parts of the original Weinmann concave rims, for 40$ each. Seems reasonable to me, and i can reuse the original hubs and spokes, get new nipples, and build then back to vintage brand new, again.
Overall the bike is somewhere in between art and ride. I need a ride, but i really love how the bikes look when they are all restored to the vintage look. So i am trying to do it justice there too. Over time i might work on bringing it back to 100% vintage, but for now i need it to work.
Unless there is something to look into on CL that i am missing. These sun CR18 or M13 II look like great workable options, especially within budget too. I really appreciate having the piece of mind knowing that ordering these will fit... I am open to hearing more suggestions in the mean time, i am planning on pulling the trigger one way or another this week.
Thanks!