Badgercat- 27s are slightly bigger than 700s, but most of the tubes have enough play that they sell them interchangeably- I think if you want to be really picky, you'd have to adjust for width, but if we're talking 1/8in it'll be fine. Officially, the no no would be to put a 27 tube on a 700.
You could switch to 700s- just need to move the brake pads down a bit on the arms to reach the wheel. I just figured if I did that, I'd need a new freewheel and have to think about chainline etc. And Harris's is about 4 miles from me and stock lots of nice options for 27s. So it was more a decision of inertia.
Ride her as is and keep an eye out for parts. I just happened to find a guy near me that had tons of old parts so we swapped a few things out (mostly back to original or as close as we could get). I am still hoping to find a period correct aluminum crank someday, upgrade the front derailleur, etc. but for now she's fine. You're sitting on much better components since yours is slightly younger. (And she's a mixte which makes her 3 times as cute!)



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