I would pass as it is not complete. Nicer 1990s rigid frame mountain bikes can be found around here in the $100 to $150 range. They just don't get much respect. You should have pretty good leverage with a bike that is not complete and ready to go.
All that being said, I like the old mountain bikes for an around town bike. I have a couple myself.
Unless you have a lead on some nice wheels cheap, you will quickly spend more than what a complete bike would cost.
Last edited by wrk101; 02-16-09 at 07:56 PM.
Reason: clarification