DOM! I don't know what I'm doing... I'm SO scared! (sorry post title made me think of this...)
Photo9,
The most cost effective way to go single speed is to simply remove chain links and set it up to your rear cassette from the larger front chainring. Remove the derailleurs and all the rest to lighten the bike, but keep the brakes. I'd also remove the second levers.
Stage 2 would be to go for fixed if you like single speeding. Find out the rear spacing for your rear dropout. Typically I'd go with 126mm (according to
Sheldon Brown's website, a wealth of information). A rear wheel can be ordered for pretty cheap.
Let me know how it goes - I think this is a sweet looking bike and would look cool as a SS / Fix.