Reddit mentions of Dia Compe 76 Grey Matter Brake Pads (Bag of 4), Grey

Just so you know those shifters are pretty sought-after and go for decent money on eBay. They work awesome, keep them, but when you move on from this bke you can probably get your $60 back pretty easily.

That said, your easiset upgrade is to change the brake calipers. Some good reliable brakes are the Tektro ones here, but then you're doubling the cost of the bike. If you have a bike co-op in your town go see if you can get a decent used set.

Whatever else you do, change the brake pads. These are ultra cheap and formulated to work with steel rims. You can check with a magnet if your rims are steel.

One thing I'd really recommend is to hit up ebay for some better brake handles, as those dia-compe handles don't work particularly well. My old Shogun had those same handles someone had put on it, and braking was terrible.

I found some Shimano 600 brake levers for $20 (was a score actually). It brakes as well as my modern bike with those handles. Here's a pair for $30

Also, with standard old brake handles you can get some Cane Creek brake hoods off Amazon for cheap. Also, these grey brake pads work really well on the older brakes.

Other than that, tune it up and ride on! Looks like a great bike.

The rim is fine, take a scotch-brite pad with some soap and water and scrub it down.

Replace your pads (from what I can see, they'll be these)

Note: That groove on your rim is a wear groove. When it disappears, you're rims should be replaced.

I got this package for $20 on ebay http://www.savannahtrading.com/images/DURASET.jpg - 2 sets of pads and a pair of holders. Not highway robbery but still silly considering it probably cost $1 to manufacture.

My next pads will probably be Dia Compe. http://www.amazon.com/Dia-Compe-Grey-Matter-Brake/dp/B001CJZ2S8 2 pairs for $8. I had something similar before and don't recall how they performed but am pretty sure they were no worse than the salmon pads.

Aluminum rims.

I don't think that's a 28" wheel. check again, old bikes are 27", new ones are 700mm, mountain bikes are 26" or 29".

Tires: Paselas used to be cheap and good 27" replacements at $15 each but the prices have gone up. CST brand on amazon are cheap chinese ones. Bell has these kevlar lined for $15

https://www.amazon.com/C638-Wall-Wire-Bike-Black/dp/B0037N32QQ/ref=sr_1_7?s=sporting-goods&ie=UTF8&qid=1485405078&sr=1-7&keywords=27%22+tire

add 2x 27" tubes (700cc ~28-32mm tubes might work) for $4

Diacomp brakes: $6.

https://www.amazon.com/dp/B001CJZ2S8/ref=pe_385040_30332200_pe_309540_26725410_item

brake and gear cables and housing: $6

https://www.amazon.com/PITCREW-500-Cable-Change-Kit/dp/B002GCALOU/ref=sr_1_1?s=sporting-goods&ie=UTF8&qid=1485405425&sr=1-1&keywords=bell+brake+cables

Bottom brackets needs sweat equity, repacking with grease and wash out the crap.

So you're looking at $50 in materials and about 2 hours of time. I've done this on an old 27" bike and still had stem shifting, man when you get the opportunity finding a decent STI shifting bike on craigslist for $200-300 would be a great value to keep your eyes on.

Don't upgrade anything more on this. god help you if it's a french bike with french threading.

New brake pads made a big difference for me. I bought these and they made a big difference. Also make sure your brakes are adjusted correctly.

I have a 73 Continental which is almost identical. Love that bike. Lots of cheap parts available for it and it's built like a tank (of course that means it's heavy as shit). Nice wide tires so it can go anywhere.

You'll want a new saddle and some new pedals at least. If the rest is in good shape I say leave it.

These should be the brake pads you need.

www.amazon.com/dp/B001CJZ2S8/ref=cm_sw_r_cp_apa_3a5qybTMGFV9C

My buddy built one of these when he was barely scraping by without a car after high school. Said it was great at getting him to work except for the fact he was running though brake pads like weekly since he used a 70's road bike with the extra atrocious eraser type brake pads.