As for 2)-
You can do one of a number of things, but you'll have the problem that modern BB's take 24 TPI threading and yours is likely to be 26 TPI. You can tap the shell to 24 TPI, or buy a Phil Wood BB and 26 TPI cups ($). Or do what I did and grind away all but 3 rows of threading on a modern cartridge BB (3 rows of 24 TPI will screw into 26 TPI shell just fine) and use it that way.