Adjust the front derailleur, it's possibly the easiest adjustment to do on a bike because you can see it move.

Urbanknight is pointing you in the right direction with sheldon brown's site. His website is a brilliant resource.

That's a sweet bike, and I'm sure you'll enjoy it! When (not if) you get a newer bike down the line, you can work on this one to make it a single speed or fixed gear or something to make it a winter bike or you can leave it as is for tons of fun. You'll love it! I loved a friction shifting peugeot I used to ride