Check out your LBS and have them go over it. Mine did a quick lookover and said I needed new brakes since mine didn't have replaceable pads. When I bought my used Trek Y-11 it needed shifters and I knew I couldn't do that myself. I bought them from the used bike store and let my LBS put them on. I would have purchased from my LBS but he'd have to order them in and I wanted the bike done right away.

Tires/tubes are easy to replace. Prices vary on the tires you buy. Cheap ones are about 15 bucks a piece. You'd need to check the rims and spokes for damage though.

Grips are fairly cheap depending on what you want. Around 20-30 bucks for basic ones. Hopefully your LBS carries a variety or they can order you in some. I paid 12 bucks for my Y-11 but those were cheapie mountain bike grips.

Is it rideable? Gears shift through okay?

Do you need new brakes entirely or just the pads replaced?

Working on a bike is fun but takes time. If you don't know what you are doing, ask or pay them to do it right.

Have you had a chance to clean her up some to see what else needs worked on?

Chances are that if it's been sitting in a basement, it's probably in pretty good shape. I was shocked when I realized my Y-11 had rarely been used and is near perfect condition and she's 13 years old.

I bought 2 books for my birthday the other day on maintenance/repair. There is SO much more to fixing a bike than I ever thought possible. No wonder these guys can charge so much to fix one up for you. I need to learn to repair bikes..LOL.

Pics would be great!