[QUOTE=BengeBoy;6631275This will be my summer commuter when I'm done with it....am not sure whether to modernize it just a bit as is or possibly try to spread the frame and put in a Shimano Nexus internal hub and make this an evil pink commuting machine.[/QUOTE]
You might not have to mess with respacing the rear triangle. My QBP book lists the Nexus-3 coaster brake hub as 120mm OLD and the Nexus-7 coaster brake as 127mm OLD.
The 7-speed rim brake version only comes in 130mm but I'm thinking that it shouldn't take much effort to lose a 5mm spacer on the left side.