Originally Posted by Sixty Fiver

A 126mm steel frame can easily take a 130mm wheel but aluminium and carbon should not be reset for 130mm because of the limitations of the frame material... steel can be cold set.

If you fit a nice126mm cassette hub you could build a custom cassette by using 9 speed cogs and spacers on the 7 speed hub to build an 8 speed and not have to deal with any more dish than the hub and wheel already has.

It will need to use 9 speed shifters and chain to correspond with the cog spacing.