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@TheBrick(Tommy)
It seems to spin ok, don't seem too rusty, nothing a bit of chrome polish could would not sort out. I don't know about the b.b for play, but as with all of these old bikes replace the bearings and then adjust it up and you should be golden. The rear hub is branded as Hurcules but apparently this is just a rebranded of a S.A so is on a 42 or 43 mm chainline.
Would be just restoring it and not converting?