Some old Peugeots are great frames, many are not. Based on the cottered cranks, this is almost certainly old enough to have french threading. If it's a good frame, get the VO bb. If it's a junker, either see if you can find an appropriately sized spindle at the lbs and use the existing bb cups, or go find another frame. If this is a lower end model, I'd think twice about building it up -- I wouldn't deal with the headache of french sizing (it doesn't end at the bb!) unless the frame is worth the effort. Post a pic in the classic and vintage forum and you'll likely get quick feedback about the frame.