Actually the proper position of the handlebars should be so that the bottom flats of the bar are pointing toward the rear axle. This should allow you to have a proper reach and weight distribution in the drops, allowing for the length of the frame. If the drops are flat, you will be twisting your wrists away from you to grip the bar in the drops, for good support your wrists should be straight, distributing your upper body evenly between so it can allow making shifts on the down tubes.

For the rims, your brake pads should be able to be lowered 1/4" or more, and also confirm the width of the rear axle matches your World. Not certain if the World uses 120MM spacing, or 128 MM width as many index spaced freewheels require.

The foam grips will break down over time and will loose the vibration dampening effect by the end of the season, a good cork bar wrap in your color of choice may provide you a sleeker look and allow you to personalize as the white frame could be made to look more stunning with a color wrap.

As for the wheel bearings, my LBS charged about $15 for a pair and another $15 to true them. You bike should be fitted with Weinmann alloy rims, worth the cost to repair and lube job to utilize.