I have the same year (1996) 750; a nice bike that is sadly too small for me. Unlike the California market, hybrids fetch a premium in Minneapolis. I guess everybody's experience is different.

I always wonder why there's so many mtb drop bar conversions compared to hybrid drop bar conversions. Seems like an easy recipe for a budget touring bike to me. I'd recommend removing the rust spots and treating the bare metal metal instead of repainting the whole thing, but that's just because I like the factory Ice Black.

In any case, enjoy your new bike!