Be sure to consider the potential axle breakage with freewheels vs. cassettes. Definitely don't think about an 8 speed freewheel (you didn't mention this option so I guess you've figured it out). I'd think you could find a decent set of hook-bead 27's for less than $140, but maybe not in your market. There are still some good 27" tires around. I'm partial to IRC Road Duro II.