Ok, got the rim repainted this morning and it looks new again. WE HAVE A BIKE WITH BRAKES!!
I also ground down under the fork crown for more tire clearance and touched up the paint.
NEW ISSUE:
When I first assembled the bike I noticed the chain had a tight spot in it when rotating the cranks. My first thought was it had something to do with the junk Shimano coaster. I pretty much forgot about it since I knew that coaster would get replaced. Well, the tight spot is still there with the new Bendix. The chain is new, so I'll rule that out as a possible cause. The sprocket must either be out of round or the center hole was stamped out off-center. I guess I could leave it like it is and just make sure the chain is adjusted to where it doesnt become "too tight" in that tight spot. Hmmm.. It'll always bug me if I leave it like that though!!
Anyone have a 44t Monark sprocket to sell me??