How to setup a Archtop for Rhythm playing?

[Joe Kaufman]

I just recently bought a Harmony Archtop off of Craigslist (I wanted a guitar case and the add said Guitar and Case $50). The guitar turned out to be a 1957 Harmony Monterey h1456 http://harmony.demont.net/guitars/H1456 The guitar was mostly unplayable with broken old out of tune strings and extream buzzing in the first fret. There was also buzzing from a lifting inlay at the third fret. I bought it anyway, free guitar for the price of a case! Trussrod and a flat neck and no seperations or cracks in the body though.

Anyway, I've fixed a few of the problems and can play closed chords up the neck and I've got to say I finally understand how people get that 50's pre-drum country rhythm sound! Its completely different then my flatop.

I still need to have a new nut made or shim up the current one, as well as fix the fret marker inlay, but how else would you set up this guitar to be a pure rhythm guitar for playing country without a drummer? What strings and how high of actions? Heck I think a thicker pick than I am used to might be usefull too! Any advice would be helpfull including how much is too much to spend on fixing it up.
Thanks
-Joe