Did you happen to notice that the WHEEL is not Centered in the Frame??? That should be the first thing to be fixed. I'd look at the Axle Jam Nut area for any first re-alignment efforts... note the not-normal, extra large, Gap between the Freewheel and Frame dropout... some quick checks show a 4 to 7mm gap on bikes.... measuring from inner face of dropout to outer face of the teeth on the small sprockets... and i'd guess that extra gap comes from an extra jam nut being added to the axle to make that wheel fit a bike it was never built for...