Re: Pedal Clearance
You didn't mention what engine is going into the frame. If it is a China girl and the clearance issue is that a little bit more room and the pedal would clear you may find that just switching the crank with one made in China or Japan will give you clearance. The bike looks like it may be a Schwinn. If so, then switching the crank (along with the donor crank's bearings and fittings) will save the day. I did this with a couple of 1960's Schwinns and didn't have to buy anything. Good luck.
Someday when I grow up I will probably lose interest in toys with wheels, but until then...