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Nice score!
Mavic offered a conversion kit at some point, it was discussed here: http://www.bikeforums.net/commuting/480009-convert-your-old-mtb-700c-wheels.html
I'm fairly sure it'll cost you more than 10 times the price of the frame tho. I'd either stick with 26 Inch, try to fit a coaster brake or come up with some diy franken conversion...
Sig_Arlecchino
Got this beater frame for a fiver
Takes 26" wheels but I just threw some road wheels in to see it resemble a bike. I doubt I could find 29er wheels for as cheap as I can 26 but that would be rad. Don't know how I'd get the cantis to reach though