Re:
I thought I'd update my thread with some pictures of my upgrades.
I haven't done anything regarding my original plan for suspension forks, I'm still considering making the change but not 100% convinced at the moment.
I've fitted the T780 Deore XT V brakes and M739 Deore XT integrated shifters and brake levers. These are a massive improvement over the original brakes, also the shifters are much more postive than the old Deore LX M567 units. I had to replace the front derailer not just for aesthetics (it had picked up a bit of corrosion) but the STX RC one had quite a lot of slop in the pivot points. I managed to get a NOS M739 Deore XT unit which is a much better shift. All cables were replaced during fitting this lot.
Unfortunately as the original cantilever setup routed the rear cable through a small pipe round the seat tube I had to get a little creative with the rear cable housing mount for the V brake. This is as neater solution as I could come up with. I have an original Trek corner bag and once this is in place the clamp is not really noticeable.
I've also added some Shimano PD-M520 MTB SPD Pedals.
Since putting some miles on it I have needed to replace the bottom braket, chain and rear cassette. The bottom braket was a Shimano unit where as the Chain and Cassette were SRAM units. I also changed the front chain rings for a NOS Deore LX M569 Chainset.
The only thing I need to do now is change the headset as its binding a little. I've disassembled it and the bottom bearing race has had its day. Other than that its riding great. Since May I've put approx 920 miles on it.