Cyclochica,
I have run into the 27"/700c issue on a bike I am fixing up. Unfortunately, some regular mid 80s or so 105 brakes I had would not quite reach to fit 700c so I am getting some inexpensive Tektro for the time being. I saw the longer reach Shimano brakes to which Pokey refers, but they were about $35 each. You may get lucky. If you have just 4 mm of additional depth adjustment your current brakes may make it. I wouldn't have minded keeping the 27" wheels on this particular bike, but I am setting it up as a fixed gear. My fixed gear wheel is 700c so it is cheaper to get new brakes than new wheels.

Since you are a recreational rider you would probably be best served with a pair of pretty plain wheels. The ideal would be to have a pair hand built at your lbs, but you can get good 32-36 spoke wheels from nashbar.com or performancebike.com at very reasonable prices.
FWIW,
Raymond