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That's a very attractive machine!
The brakes - do they work in the rain?
I have ridden a bike with a similar (probably identical) derailleur. It did change, but I couldn't get it to work well, probably my fault, but it did seem disappointing. That long arm should give scope for a small inner chain ring, which might make the bike a practical tourer without doing away with the three speed block.
Before you bother with a hub dynamo, get hold of one and try turning it by hand - I think you will find there's quite a lot of resistance, and that's there all the time whether the lights are on or not. Then there's the weight to consider.
The top sprocket looks a bit worn. If it's any good to you I have got what I believe to be a French threaded 3 speed block. You are welcome to have it, if you want to come and collect it from London NW10.
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In the rain it brakes, just takes a little longer to stop ;-) probably also partly the fault of brake pads, which I will replace in due time.
It actually only has 1 chainring and, though it might look bad on the photos, the sprockets are in a really good condition!
When I picked it up, it wouldn't really shift, but setting it up is quite easy. Only the strange sizes threw me off a bit, must be a 33 on the headset.
I love hub dynamos, the resistance is not something you feel while riding. I really want to use it as a commuter and modern lights are just so much better. I also fear shredding through the tire with the side running dynamo..
Bebolux Brakes! Quite a sight indeed, also brakes, given the steel rims, exceptionally good