Here's an update:

I'm keeping this bike at my parents' house since I have no room at my apartment. My dad and I have started to bang out the dents in the fenders and scrape the paint from the frame. The paint is coming off pretty easily, and the underlying metal looks really good. We have also freed the pedals with good 'ol WD-40, and they are surprisingly smooth. I think we're planning to just paint it ourselves with some good spray paint and a clear coat.

I've taken a few in-progress shots that I'll post this evening. Stay tuned.

EDIT: Also, the brakes work great!