Ryan: The basic frame on this bike looks nice and could be a good platform to build a nice road bike from. From the ebay ad there are a few issues that hopefully you will not continue: 1) the tilted down saddle looks really dorky, if the vetta saddle is tore up you should plan on replacing it, at the very least you should adjust it to level with the ground and start from there 2) the stem: its raised up so high in the photo that I suspect its way beyond the "max" line...very dangerous situation. 3) matrix rims : you'll have to tune up your wheelset, true the rear wheel. Personally I'm not real fond of matrix rims, the pair I have make a "thump" when the brake pads hit the seam each time around. This condition can make your fork oscillate as you're trying to slow your bike down...not a real high precision riding experience. You might want to consider going with a different wheelset or have the hubs rebuilt with more modern machined sidewall rims for increased braking safety. 4) The rear cassette looks real junked up, and possibly worn out. You're going to want to remove the cassette and scrub the individual cogs and spacers and inspect it for excessive wear. You'll want to install a new chain while you're at it.
By the way, I was just curious how tall you are and what your cycling inseam is,
this is a rather large bike. If you are over 6 feet tall it should be o.k.
To whoever recommended an American Classic seatpost: if you're over 200# you should look to a better design, the upper clamp on the American classic isn't very good, and the little setscrew that they use to adjust tilt is just too much of an afterthought. My suggestion there would be to get a Thompson, Salsa , Syncros, Control Tech or Ritchey with the 2 bolt design.
The shimano parts are keepers they can be cleaned up, greased, lubed and reassembled to perform well for a long time. Adjusting the rear derailleur for indexing isn't hard once you get the hang of it, but you need to start with a clean drivetrain and a new chain in order to improve your chances at flawless indexed shifting which is a reasonable goal, there should be no reason why you would want to run the rear shifter in friction mode. Good luck, and post some pics to show the after shots...