Also, there are ALWAYS things you didn't think of that end up adding to the total cost of the build, and they add up FAST.

The head tube and/or bottom bracket may need facing, you may need new tools, etc. etc.

So far, this seems more like a general "build vs buy complete" discussion, which is fine, but look at the options suggested.

Option 1: Dawes SST

Option 2: Schwinn conversion

One of the last posts is absolutely correct - if you are doing a conversion, you almost always spend more than you plan due to unexpected issues. Some of those old Schwinn frames are very junky beasts. You do need to know what to look for in a good conversion frame. With what you have here, you are going to spend about $200 more for a bike that will be heavier and take longer to get (aquiring parts and building them up take time) for the Schwinn conversion. The parts you listed for the build are all pretty good, but are of negligable difference when compared with the dawes (wheels are probably the biggest advantage to conversion), and the frame is worse. Given the stats listed, I say go with the Dawes.

If you are doing a build (which is how I have done 4 of my last 5 bikes, so I am obviously a fan of that option), then think seriously about getting a decent frame to start from. There is usually some nice deal out there at any given point in time (IRO group buy, Scattante SSR, Kilo TT) that gets you a nice frame to start with reasonably cheap. Yes, this will add to costs, but you can build it up right for word go. Then shop around really carefully for parts, and I still think you can get in at under $500. If a new frame just isn't in the budget right now, then do spend some time researching what makes a good old steel frame vs a bad old steel frame.

I have nothing wrong with used parts, but you just need to know what to look for, because you are more likely to encounter errors. This is why a shop starts a new mechanic trainee on new bike assembly rather than tune-ups - a new bike is less likely to have unforseen problems.

I could be wrong, but people who are really satisfied with their builds (even if they go way over budget) usually have some vision of what they want in the end to make their bike "their own." Do you want to go for some special color scheme? Do you want to incorperate some special component/frame/wheelset? Is it important to have a new bike/ vintage bike? Do you want to go as absolutely inexpensive as possible? Etc? You can take nearly anything and turn it into a theme for the bike, and once you do, it can really help guide the direction for your build. Sorry if this last bit seems too abstract or scatterbrained. Essentially what I am saying is - if none of the decisions on the table seem attractive to you, then wait until something comes along that does peak your interest and then go for it. If you can't wait and need something now (which is fine), then get a complete bike.

Wow, geoffvsjeff really summed up my situation well there. I took another look at the schwinn and realized I had really played it up in my mind since the first time I saw it. I'm sure it would have made a fine conversion but it was by no means my dream frame.

I do love to build and customize things so I think for now I'm going to hold off and look for deals/save up and possibly build a SS down the road. For now I'll just ride the bike I've already got. Thanks for the advice though everybody.