Knhoj: Brakes and derailleurs were frozen solid. So I went for the zero investment option, and flooded every pivot and bearing with Marvel Mystery Oil. It took a week of repeated applications, and shoving things around, but everything works smoothly now. Smells like mystery oil, but such is life.
Sounds like you could have a decent bike (albeit aheavy) for a commuter. I'd get the bottom bracket, headset and hubs repacked. The mystery oil helps, but can't completely rejuvenate the old grease in these parts. When I've taken old bikes apart I often find that the grease has dried to the consistency of beeswax or worse.
If you are feeling up to a little wrenching you might want to swap the components (except for the crank & BB) onto that Le Tour frame. You'll shave ten pounds on the weight.