Update
I've just been re-reading this thread, which is great fun.
A quick update for everyone. I've fitted new tyres: Hutchinson Nitro, which are very good but a little heavier than I would have liked.
I've also fine-tuned the geometry a bit, raised the saddle 3mm more and the bars as well. It still needs more tuning, what I think I really need is bars with a shorter forward reach so I can more easily ride on the hoods.
I've been using the Raleigh for commuting to work three or so times each week since I rebuilt it and I've put over 500km on it. My regular route is 13,8km and I sometimes take the long way in or home which is 27km. Last night I took the extra long way which is 30km, and that was 1:10 at an average of 25,6 km/h, with which I'm fairly happy.
I'm thoroughly enjoying this bike, the speed is amazing. I'm finding that the more I do, the faster I get and the easier the climbing becomes.
What I'd hope to do in the near future would be to fit a lighter, more comfortable saddle and sort out the geometry such that I'm perfectly comfortable while on the hoods.
I think I'll probably just leave the frame as it is and cover the rust spots. The yellow-to-white fade has grown on me.
I still have a slight problem with the indexing of the gears and I'm troubleshooting it. Could it be because I'm using the old mech?