Seems like a decent frame for $40 be cool if you took a photo of the drop-outs so we could see what you're talking about. Should make a good SS or fixed gear.
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1 Super Record bike, 1 Nuovo Record bike, 1 Pista, 1 Road, 1 Cyclocross/Allrounder, 1 MTB, 1 Touring, 1 Fixed gear