If its disc there is no reason not to; it means you can get cheap MTB wheels and put on nice and supple compass tyres for road usage OR knobby for off road ..
Go for the 700c version. There's enough clearance room and it will look more in proportion. 26" only makes sense for small frames or people who think they're going to tour Africa and won't be able to find a 700c tyre when they do.
Could be a good point.
Frame was only a 58 I'm afraid!
(I'd be ordering a 56)