My first inclination would be to pitch it. If you intend on restoring it, the first rule is, don't replace anything you don't have to. Clean up the paint and chrome with a fine steel wool, then wax it. Lube and grease everything that spins. Dribble oil into the freewheel. I think you'll find that with the application of enough oil, you will be able to get the derailleurs and brakes working properly. Don't even screw with the chain, cables, housing, brake pads, or tires/tubes. Just replace them all. DO NOT replace the wheels; that'll be just begging for more problems than you can imagine. Clean the wheels up and, if they're severely out of true or have irretrievably-rusty spokes, rebuild them yourself.