Raleigh Medale - Refurb? Advice?

Looks like a good solid runabout - personally this is what I'd do:

1. Get a cheap pair of 700c alu wheels and singlespeed it (700c wheels are about 8mm smaller in diameter than 27", so if you have 27" wheels you'll need to drop your brake pads by 4mm - it looks like you'll be able to do this without needing to get different calipers)
   
2. Fit full-length mudguards in silver, and fit a rack, for added practicality
   
3. Remove the 'extender' brake levers... they're ineffective at the best of times
   
   

Fitting modern 700c aluminium wheels will make a big difference in terms of weight/acceleration and braking. You should be able to find a pair of good used wheels for £30, then £20-30 for tyres and tubes (or less, if you go secondhand).

T-Cut will clean up the paint, then an application of wax (e.g. Turtle Wax) will give it a very good shine (I'm always surprised that people neglect to wax the paint on their bikes... it really does make a difference to the glossy finish). Keep going with the wire wool and Autosol/Brasso on the other components and it'll look like new.