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Building my first tri bike

Hi.
I'm very new to triathlon (my first is this summer). I have been riding/working with road bikes on and off for years. I sold my trek last year to help pay for uni, and just did a lot of trail running and the odd cycle.
To get to the point, I have two options for building a tri bike on my very limited budget.
1. fix up my old (Late 80's) Raleigh Royal, whilst trying to shed a bit of weight from it.
2. I was given a GT Road hybrid bike. It is a much lighter frame and the tiagra groupset would be much better than the touring groupset on the Raleigh. Only downfall is it is a 19" frame and I am 6 foot. For a normal road bike, I wouldn't even consider this, but I read that you can get a way with a smaller frame on a tri bike because of the riding position with tri bars. Is this a load of rubbish?

Any feedback would be appreciated.
cheers.

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