I've put Forté GT2 Kevlar Road Tires on two old Schwinns recently (I used 27 x 1 1/8 but they also come in 27 x 1 1/4). They are $9.99 online but were $8.99 in the store. I'm 230 lbs. and they work well for me. Haven't flatted yet and I've ridden through a lot of stuff with them.

You can definately true your own wheel (at least get it close enough) with a little patience and a spoke wrench.