Joined: Dec 2004
Posts: 12,537
Likes: 791
From: Middle of da Mitten
Bikes: Trek 7500, RANS V-Rex, Optima Baron, Velokraft NoCom, M-5 Carbon Highracer, Catrike Speed
If you spent $500 updating the wheel, cassette, chain, and shifters to 9-speed, you'd have less than $1000 into a nice P-38? The seven speed stuff is probably functional, so the upgrades could happen later (if it really is in good condition.)
Does it have the gusset to indicate a repair? If not, the frame will eventually crack there.