I had some idle time, so I removed the Bike Bug engine and partially disassembled it to clean it and get ready for the new parts arriving soon. Compression test with digital gauge(finger) seemed okay. Plug is almost new, roller was very well worn, grease and grime under the block signified a seasoned engine.
It's a good thing I decided to check the bottom bracket. Thankfully, the pedal and retaining nut and washer unscrewed easily after 34 years. The bearings were completely dry with not a speck of grease in there. In fact, the old grease around the bearings had dried up into a very thin layer. I scraped the flakes off with my fingernail, cleaned and lubed everything.
New brake cables and pads set me back less than $12.00