In the picture is see semi-horizontal dropouts. That's great for a fixie/ss! Not great for a modern geared hub.
In the picture it looks like the bike likely has a standard "English" threaded bottom bracket. A bike of that age would have had a "loose ball" BB design with a spindle and two "cups" (and a lock ring). Today you'd replace that with a cartridge. Select your cranks before buying a BB! (Cranks determine what BB spindle width and type you need.)
Sandpaper, wire rush, or sandblast. The latter is also a good way of removing paint.
Lots of choices. I'm somewhat fond of Simple Green and an old toothbrush.
Go to a bike shop and see what they sell.



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