The bike is almost done! My friend and I cleaned up the brakes and inspected the cables. They look okay - we relubed them and things seem to be working fine. We even pulled the headset and that will need to be replaced in the future, but for now, it's moving well. We relubed and repacked stuff. I found out I will need to get a new stem. The stem is at it's max and it has a negative drop to it, so I need to get something with a pretty good positive angle in order to make the bike more upright for me.

I did not see any rust inside when I pulled the fork/headset or the bottom bracket or seat post, so that is great news!

So...new stem and new chain and it looks like it'll be good to go, other than some touch-up paint. I will post pics when she is complete!