yeah your dropouts aren't ideal for ss/fg use, but it can be done, either:

--find a "magic" gear combo that give you perfect chain tension (i think sheldon brown has a chart you can work off of)

--ENO hub ($$$)

--or, probably the easiest/cheapest way if you are going for a single speed is to get a SS conversion kit that comes with a chain tensioner. Nashbar has one for $20-$30...

edit: i type slowly