hmm.. 160 pounds is like 320-ish american dollars right? so is it a japanese, mexican, or american strat? if it's japanese or american, then go for it! don't worry about the paint, it has no effect on the tone.

the knobs and switches could be replaced, depending on how bad they are, you can get a new switch for like $20, and if you need new pots to fix the wobbly knobs, they are about $4 each on stewmac.com as for the tuners, as long as they still work, I wouldn't worry about replacing them.

I suppose it depends on what you want the guitar for. if you want it because it sounds good, and gives you a tone you like, then get it. if you want it as something to hang on your wall and show off to say you have an 80's stratocaster, then you... should still get it because it's pretty cheap (as long as it's not mexican). so either way.. get it!