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You could be right about those lugs - I don't know what they are, but the bottom bracket is standard size, so that's not much help for indentification.
Sealing your BB bearing might be ok for the bearing, but it's not a solution for the problem - perhaps your LBS is hoping to sell you a new frame after yours has rusted through!
I think this problem is almost always caused by lack of a back mudguard, but you might take the extra precaution of silicon sealer around the seat bolt area.
It used to be normal practice (towards the end of the unsealed BB era in the 70's and 80's) to fit a plastic seal between the BB cups. You may still be able to find these at cycle jumbles, but if not it's possible to make one from a plastic bottle.
clubman
I thought the lugs looked very Chapter Lea like, particularly the rear drop outs and the fork crown. I could of course be mistaken.
My local LBS suggested I buy a modern sealed BB unit, to alleviate the problem of water ingress in the BB shell, but I feel that would be cheating somewhat, so i will see how the mudguards work out.