Rkowen, Peugeot's lower end frames typically offered excellent rides. The frames may not have been light or fancy, but they were good. I bought an old one to use as a beater/utility bike and found out it was so nice that it became my favorite bike. I am not the only person here who can attest to their delights, either.

The bike should work well for touring, as long as the gearing is suitable. Did you get one with a double crank or a triple? The link above also shows that the bike has single eyelets for fenders and racks, so you should be able to carry a load. This is what mine looked like after I built it up:



It may not be easy to see because of the panniers, but the front rack is a Blackburn LowRider, now sold by Nashbar. The rear rack is mounted to the seat stays with rubber-coated P clamps. It is nice and sturdy. I have carried fifty pounds or more on that bike.