It looks really bad, but at the same time its kinda nice I bet noone wants to try to steal that!

As far as making your bike into a fixed gear I say go for it. I had a similar PX-10 that sold for 1250 on ebay so part of me says to resell it, but its a very nice riding bike. That particular frame has a very steep headtube around 75-76* one of the quickest bikes I have ever ridden it turns in on corners without you even moving much at all...super responsive. I made my old beat up Benotto into a fixed gear last year...with a 46 tooth up front and a 16 in the back it is perfect unless its a massive hill. Good luck with it.