The final ride... or is it?

After some research on the web to see how I might repair the bike this time and I'm finding it a little difficault finding solutions for my bikes setup. These days bikes seem to have a separate derailleur hanger that sits inside the frame unlike mine.

Current

Mine (around 2006)

So I thought that I might be able to get one of these, fit it to my bike and bypass the stripped and bent frame. Dropped by a local bike shop, showed the photo and asked it if was possible and was told that it's not (as I suspected but had to ask) and the bike is to old. The frame will need to be straightened and the re-threaded and because the derailleur is slightly bent a new one wound't hurt and all for a little over $100.

Not too bad but I want to give it a go myself first as I find it a whole lot more appealing than getting someone else to do it. After my initial post I've had some help from people at work (one who in a past life worked at a bike shop) have come up with another solution. 

1. Straighten the frame (I'm going to try a vice)
2. Straighten the pulley arms(or whatever they are called) on derailleur
3. Drill/Bore out the stripped thread
4. Fit a Frame Saver (thanks Brendan) after sourcing... further research has shown they are also called dropout savers.
   
5. Re-install derailleur
6. Take into bike shop and get derailleur realigned (if necessary)

The Apollo may yet ride again!!!