I'm working on a project for my wife, kind of a vintage hybrid-cruiser thing, it's a long story that I plan to put in the build section after I get the frame situated. Anyhow, I was really hoping to find a lugged fork like that - they really seem to be fairly uncommon for the 26" wheel size, unless you look at the lightweights... so sweet score on your part!!!
Hope your paint idea works out! Are you thinking of doing a rub-through paint look for the red primer into black? That would be pretty cool! If it were me, and sadly it is not, I'd deck that thing our with a skinny (1.5" or so) front and either one of those old school looking slicks (Jerrald or something like that?) or a big fat downhill tire. And a road drop stem if you have one - get it down into a mean looking position. I actually have a black & scrappy specialized stem I'd be happy to donate! Just my thoughts, pretty cool start to a $15 flea market find! Have fun!!!