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@unicanitor
That seems like quite a move away from the initial idea of £700 on a complete bike. £200 on cranks and £20 on a BB doesn't really make a whole lot of sense to me.
Not sure what else i can add? I think the advise of buying something secondhand is the best advise you've been given, i recently saw a 1980's Rauler with COMPLETE Campagnolo Pista group for less than £600. I'm sure there are similar deals to be had if you look around and keep an eye on the classifieds.