Cheap Schwinn Varsity for a beginner

Hi! I need advice. I love biking but I only have a crappy walmart mountain bike that is falling apart on me. I ride 2 miles to work every day and would like to be able to go on ~20 mile rides on the weekends, but my mountain bike hardly even allows me that. I want something cheap that will be better on the road. I also don't mind learning to fix it up, there is a community bike shop nearby that I want to check out.

I am thinking about getting this bike:

http://buffalo.craigslist.org/bik/4559652202.html

Its a 1973 schwinn varsity. I spoke to the owner, he says it probably needs new tires and axles. The price is not necessarily an issue, its only $35, but fixing it up will probably cost a bit. My main concern is, is this bike worth fixing?? I know its not everyone's favorite Schwinn model, but it'll do the trick, right? Thank you so much for any input!

 

How can you go wrong for $35?

 

hahaha true! I guess I am also wondering if this is a good entry-level road bike for someone who has only owned a mountain bike?