do i need a 5 speed or a six speed freewheel for dropouts spaced at 124 mm?
If you measured 124mm, they are probably supposed to be 126mm, in which case a 'standard' 6-speed or 'Ultra' 7-speed, but there's no reason why you shouldn't use a 5-speed if that's what you have laying around. If you're feeling fancy, you can re-space a 6-speed hub to take a 5-speed freewheel and end up with an almost dish-less wheel. The Ultra 7 is actually slightly wider overall than a 6, and some frames have chain clearance issues in top gear if the seat stay tube extends close to the axle centre of the dropout.
If you measured 124mm, they are probably supposed to be 126mm, in which case a 'standard' 6-speed or 'Ultra' 7-speed, but there's no reason why you shouldn't use a 5-speed if that's what you have laying around. If you're feeling fancy, you can re-space a 6-speed hub to take a 5-speed freewheel and end up with an almost dish-less wheel. The Ultra 7 is actually slightly wider overall than a 6, and some frames have chain clearance issues in top gear if the seat stay tube extends close to the axle centre of the dropout.