Originally Posted by
ZoeS
The gear cables and break cables probably all need to be replaced, wheels need to be trued, the tubes might need to be replaced, I want to change the handlebars, I've love to add fenders and a rack, and it needs a thorough scrubbing and polishing.
thats all?

no big deal.
Here's a cool place to find bike stuff...and some handlebars
http://velo-orange.com/touristbar.html they've got fenders and racks and other cool stuff...some of its kind of expensive, so check out ebay too. even some of
that is kind of expensive too

I'm always amazed at how much racks sell for in general.
New brake & Shifter cables will run you 20 bux or less. You can get them from your local bike shop. Same with tubes, they're cheap also.
How bad are the wheels out of true? your LBS usually will give it a go for you, but don't spend much money on those wheels if they are real messed up, you can get cheap new ones from Niagara Cycle like wrk101 said.
You can start by cleaning the bike and the various components. Use oil or preferably silicon lubricant, not WD-40. Use WD-40 to clean parts, then lube them with actual lubricant. Don't be afraid to take parts off your bike to clean em, but you might want to take a couple of pictures before you get started so you have something to reference later...just in case.