The bike sounds pretty comparable to my 1970 Peugeot UO-8, which gives me alot of service and pleasure. I have gradually updated and upgraded most of the components, courtesy of yard sales, donor bikes, eBay, and my junk parts bin, but I would not consider investing in a paint job (as I did with the 1959 Capo) or expensive components. If you enjoy working on bikes and scrounging for parts, go for it. Otherwise, find something in better shape, although I don't agree with Tom's admonition that you need bike of "much more recent vintage."
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"Far and away the best prize that life offers is the chance to work hard at work worth doing." --Theodore Roosevelt
Capo: 1959 Modell Campagnolo, S/N 40324; 1960 Sieger (2), S/N 42624, 42597
Carlton: 1962 Franco Suisse, S/N K7911
Peugeot: 1970 UO-8, S/N 0010468
Bianchi: 1982 Campione d'Italia, S/N 1.M9914
Schwinn: 1988 Project KOM-10, S/N F804069