I'd say first off if it's a 753 frame, DON'T spring it open.
You may be able to reduce the spacing on the hub by reducing the spacers but you will most likely need to redish the wheel. If you have the tools and the skill, then it's not too big a job. I guess the 130 screw on hub was to accomodate 8 speed. I'm taking a guess that you won't be trying to fit 8 speed, although it's possible, I've always found that the smallest sprocket is a little too close to the dropout for my liking.
do not despise the snake for having no horns, for who is to say it will not become a dragon?