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

That looks schweet! I do have to ask--with so much seat post showing and a high stem, is the frame too small for your wife?

Neal

I kind of thought the same thing, but I had a bigger frame and she didn't like it. I think the top tube length is better than the other one I had.

I heard really bad things about those Sun CR18 rims in 650b. Was it hard to get the tires mounted?

Yes!!!! They were the hardest mount I have ever had, but you can't beat the price.