bike rebuild: progress so far

i have recently become enamoured with the idea of being a person who cycles, and although i do see great merit in both the environmental and fitness benefits (and if questioned i will claim these as my key motivations!), secretly the real reason is because I imagine that when I am riding along I will look something like this:
however, the reality is a lot more complex than that, as i am finding out now (week 3 of bike rebuild project)!

I have a vintage frame which i have dutifully taken apart, cleaned, derusted and largely reassembled (complete with new hand grips as of today!), but now i am into the business of replacing parts that look like this:
...and it is proving rather complicated (guess who took this all apart and now isn't entirely sure how it goes back together!). the reality of being a person who cycles, it seems, is that for the moment most weekends i look less like audrey and more like her confused and dishevelled cousin.

my thanks must go to Gerry Lauzon of http://www.howtofixbikes.ca/, who book has been a great starting point - i am really enjoying the project,and it really helps to have some advice from someone who know what they're doing. next post i'll add some pics of the bike itself - hopefully near completion by then!