For what you're describing I'd be looking to spend less than $150 for the 
bike, even if it has components.  Put the $150 'savings' into a powdercoat 
in the color of her choosing... if she's like my Wife that'll make a huge 
impact on the desirability and 'newness' of the bike.  But recoating or not 
I'd bargain hunt a bit, is your local c-list fairly active?  Either that or 
check out local bike co-op's as these 80's-90's mtb's are all over the 
place.  

One other thought about getting it recoated is that you can target a really 
'distressed' looking one for even less $ and still come away with a sound, 
solid bike.

I picked up a really nicely (rivish build) MB-3 for my wife last year and 
it was probably the most used bike by her and guests in the past 6 months. 
 Her only complaint... the silver paintjob (which is in great shape btw). 
 Good luck, share some pictures whichever way you end up going!

Tony



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