You will definitely have to coldset that frame. And with 5mm each way, there could be some serious alignment problems. Follow sheldon's guide and if need be, take it to your shop. My frame is about 126 and it is a bit of a pain to get a 130mm old hub in.

To convert it to a SS, all you need is a BMX cog and some cassette spacers, new chain, and keep whatever chainring you want on the crank.