I have kind of a love-hate relationship with the Peugeot UO-8. They have very ornate looking frames with beautiful decals. They also handle very nicely and feel a lot more agile than their 30 pound weight would suggest. They have the potential to be a very good bike. I say this because some of the bike's original components are poor quality, and should be upgraded if you intend to regularly ride a UO-8.
In my opinion, the very first things to replace should be the AVA handlebar stem and the Simplex front derailleur. The stem often cracks at the slots near the bottom and can make the handlebars come loose. The Simplex front derailleur has a plastic mounting clamp that will also crack, and likely break off while riding. However, those derailleurs are rare to find these days. If you have a bike with an original Simplex front derailleur then it's a good sign that the bike doesn't have a lot of miles on it. Most of these were replaced back in the 70s or 80s on bikes that were ridden regularly.
The next upgrade would be aluminum rims. I normally don't even mind riding on steel wheels. I like to use steel rims on some of my commuting bikes because they are immune to brake wear. Unfortunately, the original Rigida steel rims on the UO-8 are especially soft and prone to kinks if you hit a pothole.
Once you replace these parts, you'll have a pretty good bike on your hands. If you have a plastic simplex rear derailleur, then keep a spoke protector on your rear wheel. These rear derailleurs shift surprisingly nicely, but they are flexible and prone to going out of adjustment.
Finally, unlike many suggestions on forum posts, I don't recommend replacing the cottered steel crank with a lighter aluminum one because you'll likely have compatibility issues with the french threaded bottom bracket. Instead, just service the bottom bracket bearings with fresh grease to protect them from wear.
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