You should go through the braking system hydraulics with new rubbers and, if necessary, get the cylinders relined. You may well get brakes if you simply top up and bleed, but they'll be a potential problem down the track... only one has to leak and you've got none!
Any brake fluid should be okay. I would get the car running on a fairly light oil and then go to a heavier grade if it's smokey or burns a lot.
