A newbie seeks help...

Joe.S Kipsy / Jonny, I'n not prepared to make my new '08 condor squadra into a fixer just yet, have a few miles to ride before then! Merc is what I have just replaced ergo, a strip and convert seemed the best idea. In the quote from Kiwi, the wheels were the things pushing the cost up as I was under the impression that unless you have rear facing dropouts then the there isn't much scope for getting good chain tension - not the case? Hippy says half link instead...

You don't need rear facing drop out but you do need horizontal or semi horizontal drop outs. The picture you posted had a frame with horizontal dropouts.

See http://www.sheldonbrown.com/singlespeed.html and scole down to pictures of dropouts

semi not ideal but exceptable
hortizontal fine
trackends best