Nice Peugeot DeanC2210 . juvela is right almost always right. He has enough experience and these UO-8's have been plentiful enough to get a idea if the fork looks right or not. These older French bikes have nice arcing forks. In my opinion, it helps to absorb some impacts that the front wheel encounters. However, too big an impact, like riding off a curb, then It is possible for them to bend upward making the arc a little bit tighter radius and lowering the front of the bike. I'm hoping his eye is out of calibration today, Try the check with the bike on level ground and placing a level on the top tube. Let us know what you find.

How are the wheels? Are they straight? It looks like the bike should clean up nicely. If it were mine I would keep the original crankset, but you may want to take it apart to get new grease in the bearings. Good luck and keep us posted on its progress. We like old Peugeots and can offer advice if needed.