I know they’re not the responses you want to hear, but they really are on point (and probably based on experience). You’ve got a really charming bike there, and getting into a good ridable state is a project.
My thoughts would be:
**
Frame:**
Strip, clean, treat rust carefully with wirewool and GT85/WD40, and degrease
T-Cut, polish, wax, polish
Parts to replace:
Rims -you want alu rims)
either 27”s there are cheap ones knocking about, NOS, or Velocity have a good range http://www.velocitywheels.com/store/categories.asp?cID=17 the Synergy looks like a good bet, but seems to be only 36h, or go for some wide 700s with big chubby tyres
Wheelset – unless the hubs are something special that deserve restoration I’d probably just replace the whole lot. You’ve got what looks like a toptube cable guild for a rear hub gear, so something like a SA3 would be quite cool. Otherwise I would just go for which ever silver fixed or ss hubs take your fancy.
seatpost – go with a sympathetic alu seatpost with an inbuilt clamp
brake pads, cables, etc.
Maybe brakes, some nice Malfac centrepulls with good quality modern pads will improve the braking while being sympathetic.
maybe bars if you’re not happy with those – possibly something more swept back.
maybe brake leavers – can’t really see properly but those look a bit odd.
Chain
Parts to restore/clean:
Saddle – just clean and then treat slowly and carefully with brooks proofhide/similar, and probably retention once it’s back to a good supple state.
I know they’re not the responses you want to hear, but they really are on point (and probably based on experience). You’ve got a really charming bike there, and getting into a good ridable state is a project.
My thoughts would be:
**
Frame:**
Parts to replace:
Parts to restore/clean: