I have a whopping $20 invested so far, once the pin for the hub arrives add another $6 or 7. The 3 speed should function properly then. It does need tires and a couple adjustments, brake pads etcetera...
Ordered stainless steel clamps for brake cable so add $4
For this type of bike I take it these would be a good brake pad replacement:
http://www.koolstop.com/english/continental.html