Yep, I'll agree with everyone who says you can cold set that dropout to the proper axle clearance; a large screwdriver--the bigger and longer the better--or a cold chisel or a flat bar or a crow bar will all do the job. Once that's done then off to the lbs to have the dropouts aligned and then you can address any further frame alignment issues. If you need the frame aligned, the dropout replaced and a nice paint job Matt Assenmacher would be a great choice for skilled and reasonable work.