Originally Posted by jcm
I would see how high you can pull that stem. I bet you can get another two inches out of it til you reach the stop mark. Then, get some Nitto B115 bars or Noodles. These have a 5" drop. Yours I would think are around 6-1/2". That's alot. The Nitto's come in a variety of widths. My 115's are 45cm.
For the brakes I would just switch to KoolStops if you can get some that will fit. If those are alloy rims, you will notice a very much improved performance.
EDIT: oh yeah, I also agree about the Cane Creek levers if you want to spend a little more. I have them on my Trek520. They're very good.
I'll take that bet about raising the handlebars 2" with the existing stem. My bet is that it's pretty close to the minimum insertion mark already. If it was my bike and I wanted to raise the bar, I'd get a Nitto Techtronic stem. They're pretty nicely finished and have a very long shank.
If you'd like a pair of Cane Creek brake levers, PM me. I have a pair that has less than 100 miles on the left one and no mileage at all on the right.