It sounds like your frame can be fixed. Small bends in the rear triangle on a steel frame can be fixed quite easily by cold forming (read bending). Sheldon brown has a good tutorial on his site.
Use a piece of string like he instructs, tied around the head tube and going through the drop outs.
You can align the dropouts with some homemade tools. when the drops are parallel, and the distance to the string at the seat tube on both sides is equal your rear triangle will be aligned and you can dish your wheel to be centered on the hub AND the frame.
It sounds like your frame can be fixed. Small bends in the rear triangle on a steel frame can be fixed quite easily by cold forming (read bending). Sheldon brown has a good tutorial on his site.
Use a piece of string like he instructs, tied around the head tube and going through the drop outs.
You can align the dropouts with some homemade tools. when the drops are parallel, and the distance to the string at the seat tube on both sides is equal your rear triangle will be aligned and you can dish your wheel to be centered on the hub AND the frame.
Good luck, and go slowly!