The hub shifts well, except for skipping in third. I've done all the exterior troubleshooting I can do, so I think it's a pawl issue on the inside. For now, I'm not going to worry about it, since this thing is so freakin' heavy with the rear rack and crate, and there are hills between our house and the grocery store, ain't no one going to be riding this bike in third for a long time!
It's going to live in the courtyard we share with our neighbors for use as a communal grocery-getter and errand-runner. If, that is, anyone feels strong enough to haul it down the six steps to the sidewalk!
Here's the crate attachment system, which seems provisionally very stable after a short test-run with weight this morning. Just a basic rear rack with a wooden crate attached via wood screws. The crate is not well-constructed and the wood is super crap, but it was free, so I'm not complaining. I reinforced all the connections with copious amounts of wood glue, and put a couple of coats of spar varnish to keep the moisture out.
Below, the anchor slat under the rack.
(BTW, from the photo above, it looks like the fender rubs, but it doesn't.)
I cut the crate down (it was taller) and used one of the extra slats to anchor to under the rack (see photos), then laid another slat in the bottom of the crate and ran the screws down through these two "sandwich" pieces, going through the bottom slats of the crate for good measure.
All in all, the whole thing is a very solid, no-nonsense, utilitarian machine. It sits you bolt-upright, and the bars come back far enough that you don't have to reach at all. I think it would probably look more at home on a country road, or leaning up against the side of a barn, than in the city, but it'll be great for trips to the farmer's market.