Converting a mountain bike for road use

I have an old mountain bike that I want to convert for "road" use, can anyone give any advice on what I should be doing to it and what bits I need, where to buy them etc etc. Have thought the following is a start.

Fitting narrower wheels and tyres
Getting some SPD pedals and shoes
Changing riding position (ie raising saddle and moving saddle forward on the rails)


Any other advice before I head off to my local bike shop this weekend (don't want to sound a total numpty!)

I'm intending on spending about £150 max including shoes. Or for this money should I be looking for a 2nd hand road bike on e-bay?!
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