I picked this up yesterday evening and got it out in daylight today. This will probably be the most challenging and potentially rewarding project I have taken on to date.
The good,
Mostly original and the parts needed should not be too difficult to source. The seat post moves freely and I am hoping the bottom bracket will come out ok too. The breaks move freely on the pivot post.
The bad,
Lots of (hopefully) surface rust on the frame. The front skewer is rusted in place so could be a bit of a chore to get out. General tarnish on breaks and crank.
The plan,
Strip everything down and check/ replace bearings. Replace rear rim and rebuild both wheels.
New cables, grips, seat and probably tyres (although at first glance they don't look too bad and I have spares anyway)
Strip and relubricate the gears.
Sandblast frame to get rid of the rust.
Repaint and new decals.
That doesn't sound too bad if you say it fast enough.