I finished my conversion today. its not perfect but tis rideable. I will post pics when I finish cleaning it and get the bars taped. but my first impression of fixed is very positive i rode it around for about an hour and i really liket he smooth feeling of flow with your legs. I got a little scared in some of the turns however.

I used the old chain form the 80s and its really loud on the cog I used the original chainring and it worked fine will a new chain fix this sound issue?

the dropouts are kinda short. so it is either all the way in the back and kinda loose chain or remove one unit(2 links) and it is at the opening of the dropout and he chain is tight. infact some of the bold hangs of the inside. is this bad? will a new chain fix this at all?

the clearance between the little bar just up form the crank housing is about .75-1inch and the tire on either side has about .5 inch or a centimeter between the tire and the chain stay and bar on the other side. is this too close? the tires are 25's if i go down to 23s will this fix that?

your chain might be too tight, causing the noise.

If it rolls, you have enough space.

First thing I do on a conversion is throw away the chain. I suggest you do the same.

a new chain may fix the issue, but the noise could potentially be other things.
chainline is a big one, so familiarize yrself with how to measure yours.

Naughtty Light Holla

how much would a new chain at my LBS be? its a clicking like everytime a tooth goes into a chain whole. how tight should it be?

It should be as tight as you can get it while spinning as freely as if the chain were super duper slack. Should not bind anywhere really.

put your bike in a stand. turn your cranks slowly and watch the center of the chain. does it kinda bounce laterally as it leaves each cog tooth?

well i was putting the wheel on and tighting the hub bolt and the looked like aluminum bolt on the inside of the hub between the hub and the bike frame on the axle shattered. it wasnt very tight just snug. im a wee guy 129 lbs and 5'10" so i dont have muscle. should i go to my LBS and get a new one or contact formula seeing as the hubs were brand new yesturday?

Try both.
I'd get one from the shop in the interest of keeping the bike going. You might end up with a spare by talking to formula.

Those locknuts do seem to break quite a bit. Whenever you have the wheel off, take a second to tighten them back up and it shouldn't happen again.

new chain and a half-link. I had similar problems with my dropouts. sucks about the hub, though.