Where in the valley do you live/work I can suggest a shop for you. (performance is not my favorite, but has some good deals when sales are on)

my 2 cents

* Smoothish tires that can go to 80psi or above will make a huge differrence something like this WTB Slick Flatguard Sport Tire - Performance Exclusive - Mountain Bike Tires


* pedals...get ones that you can use with any shoes or with spd clipless in in the future (will save you money) Forté Campus Pedals - Bike Pedals / Cleats


* racks simple I like to add wald folding baskets TransIt TS-1 Rear Rack - Bike Racks

* bottle cage..... metal, cheap and simple Forté Terra Lite Aluminum Cage - Bottle Cages


why are you thinking about new wheels? if you really need them getting a set online is probably cheapest or you can learn to rebuild them or talk to Tahn at silva cycles Silva Cycles