Exactly the same model I had - and similar condition.. !
Mine broke the swingarm though
I dumped the forks as they were almost solid & not worth fixing - there's a lot of good forks out there at the mo tho, on the Sale forum & ebay. Plenty of Bombers / Sunn XC forks etc.
I cleaned up the mech on mine & it functioned perfectly, shifters & 1 set of V's were salvageable too - yours looks similar so should tidy up well!
Yeah after a bit of a clean the shifters/brake levers have cleaned up reallly well and function perfectly...the Vbrakes were a little stiff but have freed up nicely although most seem to have lost the little silver discs? The front mech functions ok but looks horrible as the rust has killed most of the chrome. The rear has cleaned up ok...the rear cage plate is a bit fooked, but most annoyingly the adjuster barrel will not go all the way in and gets stuck at about half way...
Had a quick polish today of the top tube and it came up like a mirror in no time! Going to take a fair bit of elbow grease to do the whole frame though!
What forks did you opt for on yours?