realkit92, If the rims are steel, I'd consider replacing them with aluminum rims in the future simply for better braking when wet. For the time being I'd use some ScotchBrite and dishwashing soap to clean the originals.

Other than a blanket replacement of tires, tubes, rim strips, chain and brake pads, take it one section at a time. If you have questions post 'em in the Mechanics forum. Help is also available on the Park Tools' web site and on youtube for overhaul items. A friend knowledgeable in bicycle repair or a bicycle co-op are great to guide you also.

Brad