Here are some pictures of a recent 650b conversion for my wife. I believe it's an 86 or 87 Bianchi Strada LX. So far she seems to really like it. The last shows it with the fenders.
Specs
105 front and rear derailleurs
Ultegra 10 speed brifters
Sugino XD 500T crankset 48-36-24
Ultegra cassette 12-25
Nitto 177 Noodle bar and Pearl stem
Brooks B17S
Tektro R556 long reach brake set
Sun Rims CR18 with Shimano Nexave C500 hubs
Panaracer Col de Vie tires