on an old bike like that you are better off getting a new chain and rear screw on freewheel, it will make it ride like new (once the bottom bracket is greased, i normally get local bike shop to do the bottom bracket)
i would recommend the shimano 7-speed MFZ21 rear freewheel (then you will get more gears than you have now). if you upgrade to 7-speed you need to adjust the max limit screws on the rear mech to get the extra gears.
you can get Cane Creek brake lever hoods on ebay for cheap in that brown colour.
its a 18-23 steel raleigh frame, so its not one of the lighter weight reynolds frames, but still fairly good anyway.
a good way of getting rust off the frame is rub hard with a car cutting polish (i often find that the cheaper stuff from places like "wilkinsons" are more effective than T-cut)