two wrongs don't make a right...don't do it. You can def. get some serious dough for that frame, so just sell it and order a custom, brand new steel frame. You could get something nice I'm sure.

I think you will run into a lot of problems converting that frame. Even if you do weld a derailer hanger and cablestops on, you have to drill the fork and the rear brake bridge to put brakes on. You also will have to use a bolt on road hub instead of quick release AND make sure you always use small tires for clearance reasons. No water battle bosses, either. All in all, it's a bad idea.