strip it down to bear steel, give it 2 primer coats, 2 paint coats, and 2+clear coats. you can get a fixed wheelset for about $100 on ebay or numerous websites. be aware that the frame is likely spaced for a 27x 1 1/4 wheel, so there will be lotsa clearance. grab some old road bike drops, use the original crank, and get a new chain. you'll be good to go for less than 150