Downside of using v-brakes is that I'm trying to use an 8 speed XT brake / shifter combo unit so to put v-brakes on with that set of controlls will require an adaptor (I do have some NOS diacompe v-brakes in the parts bin). If I win my ebay auction I will have a set of XT v-brake levers coming shortly, but then I need to sort out the shifting. I have some 9 speed rapid fire in the parts bin, but then I will have to buy a new rear block and chain. Other downside is that I don't get to use those beautiful LX cantis.
Yes, that it a hole in the arch. I have another style of cable stop I experimented with last night, but it won't work - its set up for rigid forks. How does that Tektro bel crank unit work? It hurts my head thinking about it. Looking at the number of shims they have on it I think I could make it liine up properly.
Of course the other option is to slap a rigid fork on the bike and really ride old school.