Wow that thing is going to turn out fantastic, can't wait to see it all detailed!
A couple of interesting data points on these: The '60-'62 Varsinentals had super layed-back 69 degree HT/ST angles, you should be able to ride that thing no handed sitting backwards.
According to the May '61 Reporter the Continental changed to Huret front and rear derailleurs starting on May 15th production and got a new paint/decal scheme at the same time, so this bike must have been built after that date. Continentals at that time used side-pull brakes (same as the Varsity), the Continental was upgraded to center-pull brakes mid-year 1962, but only on 21" and 23" models (July '62 Reporter). I think all sizes were center-pull for '63 and later.
What does that frame actually measure center to top? We know that the 19" and 21" frames were really 20" and 22" (the size designations were changed in '71), but supposedly at that time the 23" was changed to 24" in actual dimension. It would be interesting to know if that size did actually change or if it was 24" all-along.