I have wanted a 29er mountain bike for a while and stumbled across an old Trek 720 hybrid that I was going to just fix up to make into a commuter bike but was inspired. I had many parts around my shop and what you have will dictate where you can take this. For those of you unfamiliar with a 29er, it is a mountain bicycle with 700c wheels (like that of a hybrid) using a larger tire width making the overall tire size around 29" instead of the typical 26" found on most mountain bikes.
I am a welder with a number of years experience in making goofy creations and sculptures, this is the first really high end bicycle. Producing strong welds is crucial in this project so if your not experienced get someone who is. I used a MIG welder for this and am self taught I can't afford a TIG welder yet and have never taken formal classes but have become fairly proficient over the years.
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...But I wont blame you if I screw it up.
its like the salsa vaya. Theoretically the steel's strong enough to stand the force of the disc brake. It will stress it a lot and possibly lead to early frame failure but thats very unlikely.
I mounted the caliper on the chainstay as said in the other persons comment so that it wouldn't interfere with the bike rack. Any caliper will fit you just need to have the distance from the center of the disc to the caliper correct in order to be sure the pad makes full contact. getting the angle took some playing around but once I had the right spot I clenched the brake and tacked the brake mount in place that way it was lined up as close as I could. The only difference in the caliper I used is the model. The "BB5 Road Mechanical Disc Brake" has a shorter pull allowing you to use brake levers for drop bars. They work great I have always been a fan of Avid brakes. http://www.sram.com/avid/products/bb5-road-mechanical-disc-brake
I'm contemplating a similar project as I'd really like to update an old bike of mine, but am limited by the 1" threaded head tube.
http://www.ceeway.com
mtnbkrguy: Sweet bike!