Rather than fighting back and forth, lets add to the conversation.

It does not seem right for some one that is new to the world of bikes(that arent BMX), but a proper saddle height means that your leg is just about full locked when the pedal is at the 6 O'Clock possition(straight down). If your saddle is at that height in your pictures, then the frame is way too big. My guess is that bike is probably too big for you, but every one's perportions are different. So there is no way to know for sure.

If you have some parts laying around, or find another good conversion canidate in your size there is nothing at all wrong with a well don conversion, despite what so many people say. But often times it does get costly, and for some one that is unsure of what they are doing its often not worth it. If you have a friend that is into cycling, especially fixed gears, they can be a huge resource into making a good conversion.