Seriously. Save the drama. Use the time you would spend trying to restore/convert this old cheap bike and work for some more money to buy something else. It was likely a cheap bike when it was new. Now it's a rusty OLD cheap bike that will become a rusty, old, cheap, unreliable, untunable bike. Use your time and go rake some yards, wait tables, wash some cars, and save up $200 and buy a new cheap bike from Performance, Bikes Direct, or a used bike in better shape.
Even if you get the BB and cranks situated, the bigger problem is the rust. Rust is bike cancer. The inside of the tubes are likely more rusted than the outside...and the outside looks pretty bad. One good bump in the road and something will crack.
Every old bike isn't salvageable. Swallow your pride and throw the bike into the recycle bin. This will probably never become a "sweet fixie" or even a decent bike for that matter.
Originally Posted by gtrob
Roadies can run tempo all year as that's what humans were designed for. If you want to be a cheetah, lay around and lick your paws more.