Sure is a pretty one for a diamond in the rough. She'll clean up to like new for sure! As for what to do.. If it were mine and I was looking to improve it's ride ability I'd get the rear triangle re-set for a wider rear axle and fit it with either an 8 to 10 speed rear cogset and 700c wheels then upgrade to bar-end shifters or brifters. As for saddles I'd upgrade to a Brooks b17 or Flyer in either black or honey to match the bar tape. Pedals I'd go for Shimano A520s. That's my $1.25.