Very nice. From what I have read, the free spirit frame is a nice strong one. And I know for a fact you can easily fit a 2.75" michelin gazelle in the rear end.
I'm not sure how to check the rear brake for drag. I just remember that removing the cable is a huge pain in the ass. I tried loosening the brake all the way and it doesn't change the friction issue. It really seems to be coming from the front sprocket. I'm no expert though, and I'll try to mess with the rear brake some.