Replace the brake pads if the rubber is old or worn. Internally, you should repack the hubs, bottom bracket, and possibly the headset. Start with the hubs - get a set of cone wrenches if you don't have them, and you'll need a freewheel remover. Open the hubs, clean the cones and bearings (might as well replace the bearings), and repack with new grease.
Oil is good, grease is better.
2007 Peter Mooney w/S&S couplers/Terry Butterfly
1993 Bridgestone MB-3/Avocet O2 Air 40W
1980 Columbus Frame with 1970 Campy parts
1954 Raleigh 3-speed/Brooks B72