[jyl]

I do not understand that statement. (That nothing will work right, etc.)

A reasonably modern 10 speed square taper crank will fit that bottom bracket. Heck, an integrated crank/bottom bracket can even be fitted, but why waste your BB?

The frame is steel so it can be re-spaced to 130 mm rear dropout spacing, and the dropouts aligned, by any good bike shop. Cost $25-40. It will then accept any current 10 or 11 speed hubset. Laced to your rims, if you want. Costs $80-100 in labor to build a wheelset. The spokes may even be re-usable.

10 speed derailleurs will mount on that frame fine. And 10 speed brifters will mount on those bars.

Thus, if simply swapping a new (used) freewheel/cassette isnt enough, that bike can be fitted with a complete current-day drivetrain if the OP wants to. Which will function like as if it were hung on a brand new frame. I cannot understand why you guys are saying otherwise.

$1,000. What will that buy in a brand new bike? It will buy a mid level brand and model with (maybe) Shimano 105. Molded-in-China carbon fiber or, if steel, lumpy welds on no-name tubing. A sound, functional bike, but nothing that anyone will give a second look. Certainly nothing with the class of a vintage celeste Campione d'Italia. And then a beautiful bike gathers dust.

Go to a place like Bikeforums, ask in the Classics & Vintage section.