Nice progress! Apparently it's difficult to get treated right when your name us "Cruz." Here's a Crossroads Cruz I picked up in similar condition a few years ago, 26" rear wheel, 700c front (neither original,) rust, filth, clueless chain routing, etc.:
I sandblasted the fork and painted it, then decided that painting the frame would be a waste of time (we're on parallel paths here, but I'm not as ambitious as you

)
I rode her for a brief while until one that fit better came along, now she's stripped down to a frame and fork in a corner of my garage. It's not easy being Cruz.