If I replace the rear wheel, do I need to by a wheel specific for the rear of the bike? or are wheels generic and can be placed at either the front or rear of the bike?
No you cannot use a front wheel as a back wheel. You need a hub which has threading on so you can screw on a freewheel, or get a modern hub with a Freehub so you can fit on a modern cassette. You will be able to re-use the rim though, but I would assume you would need to replace the spokes as most likely the hub's flange will be a different size, and so the spokes will need to be longer/shorter. I would suggest getting 700C wheels though. They may look a little odd on a vintage bike, but you have many, many more choices on tyres available to you.
The front and rear wheels are not interchangeable. You cannot modify a front wheel to become a back wheel. Most bikes cannot swap 27 and 700C wheels due to the brake reach. Most modern wheels have 7speed (126mm) or 8/9/10 speed (130mm) widths for the rear hub. This means that (1) you'll have to have the frame modified to accept the wider wheel, and (2) you'll have to modify your drivetrain to use the aditional gearing. I suggest finding a used bike at a yard sale or flea market with the same sized wheels as your current bike and swapping the wheels. You should be able to find one for under $20.
Rear wheel drive is where your rear wheels move your vehicle. Front wheel drive is where your front wheels move your vehicle. 4Wheel drive is where all four wheels move your vehicle. Which is better depends on the driver. There are arguments either way. The best way to determine for yourself is to test drive them. I'm happy with rear wheel drive, though tests have shown front wheel drive to be safer. If your tires are in good condition and not the problem you can still look into better tires that help prevent skiding. Here is pedia's technical description and link below: Front-wheel drive is the most common form of engine/transmission layout used in modern passenger cars, where the engine drives the front wheels. Most front-wheel drive vehicles today feature transverse engine mounting, where as in past decades engines were mostly positioned longitudinally instead. Rear-wheel drive was the traditional standard and is still widely used in luxury cars, most sport cars, and trucks. Four-wheel drive is also sometimes used. The vast majority of rear wheel drive vehicles use a longitudinally-mounted engine in the front of the vehicle, driving the rear wheels via a driveshaft linked via a differential between the rear axles. Some FR layout vehicles place the transmission at the rear, though most attach it to the engine at the front. Rear wheel drive has fallen out of favor in passenger cars since the 1980s[citation needed], due in part to higher manufacturing costs, and that front wheel drive is safer to drive[1], and that it performs better on slippery roads.[2][3] However, some automobile brands, including Cadillac, Mercedes-Benz, BMW and Porsche continue to use rear wheel drive platforms. Rear wheel drive (or all-wheel drive) is still the preferred choice for high performance automobiles.[4]
