17 miles is alot but if you work up to being able to do that, then it'll be no problem. You just have to make the time for it.
Could I offer a suggestion on that bike? Keep the frame and all the stuff that goes with it, or just leave it as-is for now. Go spend $100 on a used bike that fits you. Read up a bit on how to find a bike that fits you, its worth it.
The problem with a used bike in that kind of shape is that to buy all new parts for it will cost as much as a new bike, and that might not be what you want to do. Now, if that IS what you want to do, then more power to ya. I've got more money in the wheels on my commuter bike than I paid for the bike itself. It was worth it. If you are comfortable on that bike, and its what you *really* want to do, then go for it. Just prepared to $pend some cashola.
[edit] Its also worth mentioning that I have a 1990 Trek 820 Antelope sitting in my garage. It needs everything but a new seatpost and stem/handlebars. Derailers are OK I guess but it needs wheels, cranks, pedals, shifters, etc, so I know that of which I speak. Of course, now that I have a great commuter bike, and pretty soon a single speed road bike, I will start on getting the Trek back into shape. I might suggest the same for you
