although you posted this last summer, i wanted to find out how it turned out for you since i am about to convert a panasonic villager 2 myself. I wanna make it fixed gear, and plan on doing it this weekend. I'm disassembling it right now and it looks like the dropouts are mostly horizontal, which is a good thing for my goals. Please let me know what you did/learned in your conversion process. It would be of great help.
Thanks.