Originally Posted by seely
The frame is a "gaspipe" frame, which is heavy heavy straight gauge steel. Truly if you replace the wheels you are wasting your time because they are a proprietary Schwinn size most likely (27x1 3/8, AKA "S7") since they are actually a different diameter than a 27x1 1/4. I would run away from the bike at $25 personally... I've seen decent roadbikes for $50 and less. Someone I know got a Shimano Sante equipped Reynolds tubed Falcon for $25, which when weighed came in at about 23lbs.
Even if Schwinn used a slightly different diameter wheel, you can replace it with a standard 27 inch wheel. Unless Schwinn's size was so far off that the brakes will not reach there should be no problem.