The bolts in question are not in the vicinity of the cog teeth. They were binding against the lockring, so I filed them down a bit.

I have wrapped a wipperman 10spd chain around the smallest cog and have run it to the large chainring. It seems like it would strike the forward inside edge of the dropout. I need to size the chain and install bars and shifter/brake levers before I will be able to tell if this will really be a problem.

I assume the (yeah I know what the means) that the hanger is correct for the frame. The frame was advertised as only built up and put on display. It does not show any normal wear for a bike that was ridden. So, again, I assume that it is stock for the frame.