[MENTION=484113]Redneckroofer[/MENTION]
OK- to Business.
First- you have the stock front and rear racks- REALLY good- those are impossible to find.
From where I'm sitting- the bike looks to be in nice shape. For real- to be a good rider- it doesn't need much beyond fresh grease in the bottom bracket, wheels, and headset. Maybe new cables and housing; probably a new saddle. I love the Brooks Cambium (around $130). That's just me though.
If'n it were me- and I wanted to do a sort of "period" upgrade of the bike- I'd keep the wheels. I'd get a set of cable stops (maybe $20) and score a set of Suntour bar end shifters (maybe $50). I'd replace the rear derailleur with something cool and super functional. To be "period" I would use a 3 pulley Suntour XC(maybe $50). To make it a little later I'd get a Suntour XC Pro or XC Comp or an M730-M735 Deore XT (maybe $60+). I'd want to get a matching front derailleur... just because I'm all obsessive compulsive matchy-matchy like that (maybe $30). Again, if this were me, I'd also replace the brakes with some M732 XT or MT-60 MT-62 cantilevers. IMO- they're much better brakes-(probably the best wide profile cantilevers ever) they're seriously pretty much the same- the only thing that's seems to be different is the stamping on the back (I just bought a set for $40).
If you want to have
indexing- having a 6 speed rear end makes things pretty cool- the spacing is the same between Suntour's Accushift 6 speed and Shimano's SIS indexing. For indexing- you just have to use Suntour shifters with an index compatible Suntour derailleur and Shimano shifters with Shimano derailleurs.
If you wanted to really modernize the bike- it's going to cost a bunch of money- a good wheelset (do the 36 spoke wheels) and if'n it were me- I'd go with XT or XTR derailleurs and hubs, Dura Ace bar end shifters Ultegra cassette- Not skimping on anything. About 2 years ago I went sort of this route with my Trek 720- I collected parts for a few years and still dropped an unbelievable amount of money building it up- but it's a SERIOUSLY badass bike.
IMG_2377 by
Dave The Golden Boy, on Flickr
IMG_0616 by
Dave The Golden Boy, on Flickr
IMG_1715 by
Dave The Golden Boy, on Flickr
IMG_1703 by
Dave The Golden Boy, on Flickr
I'd say to remember that it's built with thicker- stiffer tubing- it's got a longer wheelbase- it's never going to be a weight weenie, ultralight bike- It would be folly to attempt to do that to this bike. IMO- it'll be great with an 8-9 or 10 speed rear end-