I'd look at this bike a couple of different ways.
1) Put it up on ebay with no reserve. Let the market take care of the matter.
2) Get to work. The bike looks a fright. Clean all visible parts, lube bearings/stem/seatpost, add new tires/tubes, new wrap on bars, brake pads, etc. Clean the wheels thoroughly, and make sure the wheels have been re-trued. In other words, sink a few bucks into it. Then repeat step #1.
It really looks like a beautiful bike, and deserves some love. One of my riding buddies purchased a refinished model quite similar to yours locally for $950. Our club members thought he got an exceptional deal!
Last edited by gomango; 05-02-09 at 08:49 AM.