Vintage Peugeot conversion help and tips please

the two are stuck together!

these brakes are long reach, so anyone else got any ideas?
have you tried the inside ring? probably 42 teeth? you could cut the outer ring off and round the sharp edges off with a file. or just get a different crank problem solved. as for the break, i dunno, try one of those old weinmann (or whatever they're called) things. or put a 27" wheelset on if thats what the frame originally took. hope this helps.