I can only speak to the brakes - if you're going to install one brake, put it on the front. And if you're going to do v-brakes, you'll need to weld pegs onto the front fork, or replace the front fork with one that has pegs. Rear - you need to weld, unless you want to start with another frame altogether.
Make sure you reinforce those fenders before you put them back on. Bairdco has a good set of directions on that: http://motorbicycling.com/f11/fender...ies-14032.html
Cranbrook fenders are not known for their longevity.