Nice job. I did a similar conversion ten years ago of a 1980 Fuji S12-S going from 27" wheels to 700c with 35mm tires. To my surprise, the original brakes worked with the smaller wheels. I also did a rattle can paint job with Rust-O-Leum, which is still holding up pretty well. At first I built it as a fixed single speed...
SS 2 by
Benny Watson, on Flickr
then added gears (Campy Racing Triple with 7 speed freewheel) for more of an all arounder style which I rode on dirt roads a good bit...
IMG_6263 by
Benny Watson, on Flickr
Nowadays I have it set up as a town bike with upright bars and a basket...
bars1 by
Benny Watson, on Flickr