A note on your fender plan:
Fenders are good. Big fenders are gooder. You will need clearance so take a close look. Big fenders with large - really large - splashguards are the only solution to road grit in the works of your bike and shoes. Something else at Home Despot for you: Cheap rolled stair tread material. Rivet that on to your really big fenders. For the front, start at about ten o'clock (yes, up under the fender) and take 'em to within 2" of the ground. It should over hang the sides about 1". Really. It's the front one that counts the most.

I have Planet Bike fenders on my Trek 520. The toy flaps are useless, totally useless. They're gone as soon as I get to it.

My 830 is a MB but I have 1.5's on it. I kept the 2.5" fenders and did the above. Odd looking but very effective. A great battlebike!

Thus sayeth the Mudflap Meister