For all the $ you can pour into that you might could get a fg/ss new.
To get some 700c wheels on your old bike will be $120 alone
Triple cranks replaced $60-?
also that drop-out looks awfully vertical.
http://www.bikesdirect.com/products/trackbikes.htm
they will have a crappy cog but, they are already a fg/ss.
edit: that is if you want a fg?