Lots of mixte ideas to be found here:
http://www.bikeforums.net/showthread...ighlight=mixte
Sun CR18 rims are available in 27", nice and shiny.
I built my wife a mixte singlespeed. Rides very nicely.
I think Mixte's look better with commuter bars than drop bars.
You could soak the rims in an oxalic acid solution remove the rust but I am no fan of steel rims and agree that you should get new ones. I'd ditch the turkey levers on the brakes, too.