They fork is really bent, which is very very unsafe. But putting on a 700 fork messes with the ride of the bike a lot. I would find another 27 fork (if you have a bike works I bet they can hook you up) and a good quality brake.

I think a nice 27" wheelset is what you are looking for. There are a few tires that fit what you need, and your bike will look a lot nicer. At some point you might decide you want a purpose built fixed gear, and that will most likely be 700, but there isn't really much need for you to put 700s on this bike.