UPDATE 21.10.2011
The bike is coming along nicely. Brakes and Gears are sorted, new chain is fitted, pedals are ready to go on and it just needs a few finishing touches now, including trying to remove the rust from the fork stanchions.
However, I've run into a slight snag in that the pub running the auction (that I was going to donate the bike to) is understandably now a little bit wary of selling it, as it's technically not mine to donate. I waited until now to get in touch with the pub, as I wasn't sure how long the build would take, or whether or not I would run into any major problems while I was building it.
If the original owner were to see the bike being sold, for example, they are within their rights to claim it back. This is something which I was advised of by the Police when I went to pick the bike up, and I signed a receipt to say that they could pass on my details if anyone were to report the bike missing, or to say that they had seen it and wanted to claim it back.
Being as people have been so kind, and donated parts to the build, I want to ask you what you think I should do. I'm not going to sell the bike, as that would be unfair on those who have karma'd bits to me. I would like to give it to someone local to me who would use it. There are a couple of bike recycling companies near me who I could donate the bike to, and who could then sell it to someone who perhaps cannot afford a new bike.
What does everyone think? To everyone who has an interest in this thread - please be assured that I will not be selling the bike for a profit. It is my intention to donate it to someone who will benefit from it.