Hi AceBars,
It's great that you got your brakes fixed. It's good that the brakes you have on an older road bike frame is dual pivot and long reach vs older single pivot brakes.
As for bike fit. Bike fit is actually very important and a person's bike fit can change over time especially on a road bike if they choose to ride more aero as they become more flexible. Having a good bike fit also gives you more control for the bike as well as more power to the legs.
I actually got proficient in fitting friends and family on a bike over the last 2 years since I started riding again 4 years ago. Let it be fitting Road bikes, hybrids, to mountain bikes and the various types of different bodies that I had to deal with.
I am no expert road bike fitter, but getting much better for the recreational rider. There are no right or wrong answers, but just guidelines in helping someone fit on their bike better. Most important is the rider's comfort and flexibility.
And don't bother with those online calculators since they just general give you an idea so that you are not too far off on the frame size.
Also note most road bikes frames today have a compact/semi-compact design than road bikes in the 70s-90s....So you might fit a bigger bike from that era vs one that smaller today with a shorter standover height.
OK just to get you started....
I would read through this page provided by REI:
http://www.rei.com/learn/expert-advice/bike-fit.html
Note it's a starting point, but I would refine some of those instructions and make some clarifications.
For older bikes which general don't have as much as a standover, I would start with that.
Since the rule of thumb for road bikes is about 1inch stand over clearance. Straddle the bike. Lift up the bike while keeping the bike horizontally even til the top tube hits your pelvic bone. If there's about 1 inch clearance from the tires to the ground, then you're probably ok for standover height for that frame. If the toptube of the bike hits your pelvic bone already that the frame is not right for you for sure.
Next thing is to get seat height adjusted and then seat position.......after all that is done.. you adjust the stem of the bike.
There are a few other instructions I would add in the REI instructions for seat height adjustments. I'll finish this write up later tonight or over this weekend. But I recall when I first started dealing with seat height adjustment, the most frequent question I asked myself what is a slight bend at the knee?? There's a heel trick in fitting that will gauge that you have about the right slight knee bend. Anyway I'll write it up later this week.... but just wanted to get you started...
However, I do have one question for you.....where do you normally grab when riding your road bike? Do you ride on the hoods? drops? tops?
Oh hey another thing ... I did notice your rear wheel has a 5 speed freewheel.. and don't trust it has the right number spacers to make it a 120mm.. or 126mm or 130mm...
If that is the original 5 speed freewheel on the hub and if it has never been taken off, it's very highly likely seized on the hub. I've taken off some really stuck freewheels with 300ft-lbs of torque with an impact gun and even before then using a vise and the wheel as leverage did not help.
First thing is the measure the rear dropouts and see what you have to work with... Hopefully it's about 126mm dropout and not 120mm dropout.
You can use a centimeter ruler for this If it's 12cm vs 12.5cm. At least it'll give you an idea.
If it's about 12.5 cm.
You're in luck, you can stick a 130mm road wheel today and you can squeeze it in with not much of a problem.
Here's a great sale going for entry level road wheels.
http://www.bikewagon.com/maddux-r3-0-700c-road-wheelset-32h-9-10-speed-w-vittoria-zaffiro-tire
It's now $74.99 plus shipping and comes with good tires
Last week it was $64.99... I guess they realized it's a hot selling item and boosted the price.
from the looks of it.. you're brakes should be able to use 700c wheels.
Hopefully you're shifters are friction so you can stick a 8 speed cassette and get a new 8 speed chain.
Anyway before you get all of that... first find out the rear dropout spacing and then see if the frame fits you with some mods.