Zen, lovely bike!

As for the brakes whatever fits you best. Check out what my LBS did on similar bars, think it's pictured on post #7 here.

http://forums.teamestrogen.com/showthread.php?t=19096

They are below the bar and ever so slightly turned in. It's incredibly comfortable, seems to just fit right in the hand. I have teeny tiny mousey paws so anything else would be tough.