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you will need a cable hanger to route the cable through to make it work, this article is good guide to set up and adjustment which can be frustrating http://www.sheldonbrown.com/canti-trad.html
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It does also depend on the frame, my mother has the exact same claude butler 531 mixte frame with a rack and had no problem with flex, but she didn't tour on it. If you want it to feel more stable you can; put wider bars on (maybe flat bars/swept back) and put some weight on the front forks. The other problem you may have with this bike and touring is that you don't have a huge range of gears, if you keep a light weight (under 10kg) and you're willing to push up hills a bit harder than modern bikes this will not be an issue. It is a very comfortable bike though and I love my mum's to ride
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for this build i would be tempted to get some h+son tb14 rims, not cheap but look great and are apparently a v high build quality http://constructeur.com.au/wp-content/uploads/2012/11/TB-14-.jpg
also building wheels is great fun but first time i would definitely go 3 cross and keep it simple, it'll suit the frame as well as being plenty strong and stiff. Just me though
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If you want a good trick for securing cables along a frame put a loop of cable tie through a washer then put the outer through the loop then tighten it, looks much more deliberate