How much to restore
 

I have been looking for a cool old vintage bike, and have a chance to pick this one up. It is obvious the chain and cassette will need to be replaced, but I was wanting to get your opinions on this bike, would it be worth restoring, or would I be better off continuing to look. Thanks for the help guys.

that bike looks pretty good, just look at and replace if necessary:

chain
freewheel
cables
brake pads
bar tape
saddle


maybe also want to repack the bearings in the BB and the wheels.
also may want to grease other parts, e.g seatpost

From the picture, that looks to be in good condition and old steel touring bikes like that make for a comfortable ride and great commuters.

Are you sure it needs a new freewheel? I've found them to be pretty easy to bring back to life with a little oil. A chain can be had for 15 bucks or less, and if you don't have one you'll need a chain tool as well. You might also want to budget a little for new tires ($15-20 each for pretty good ones, as cheap as $6 each for perfectly functional ones), cables and brake pads. (Awesome deal on new cables and brake pads from Nashbar here: http://www.nashbar.com/profile.cfm?c...bcat%3A%20Kits)

I don't know what's under that seat cover, but if it were me a good saddle would be a priority.

Yeah, I had planned on a new saddle if the one it has is bad. I will probably go take a look tomorrow, just wanted some professional opinions.

Assuming it fits you well, that should be a very nice general-purpose bike. I suggest salmon KoolStop brake pads and new brake cables and housings. Replace the chain with an SRAM PC-58 or equivalent, and if the gears don't skip, you do not need a new freewheel, unless you want to change the gear ratios.