P-clips are a good way to mount a rack, but here's another way to carry your gear:
http://www.rivbike.com/products/show...k-large/20-133
or
http://www.carradice.co.uk/index.php...&product_id=35
There are online shops that import Carradice bags, but they all seem to have trouble keeping them in stock. Ordering direct from the manufacturer or from www.wiggle.co.uk seems to be the way to go.

Like SteakKnifeSally said, long reach dual pivot brakes are the way to go: http://www.rivbike.com/products/show...idepull/15-026

They offer a couple other, cheaper brakes, too.

Adding a third chainring/front sprocket will require a longer bottom bracket spindle and possibly a new front derailleur and shift lever. You might be better off upgrading to a modern cartridge bottom bracket if you want to do this.