Thanks for all the info. I'm a complete novice to this stuff. Although believe it or not I actually do know how to ride a bike. So I've got that going for me...
So I see on 2mbb's link that the screw on the back of the derailleur is connected to the dropout/flange. Is that how it's supposed to be? The derailleur on the one I'm working on has the claw and a hole, but the flange area on the dropout is pressed such that the mounting hole is not on the same plane as the dropout slide area. Does that make sense? If I put the hole from the derailleur over the corresponding hole on the flange, it will then have a gap between the claw portion and the slide area, so when the wheel goes on the skewer wouldn't fit correctly. I can't find a similar pic, but it's really similar to this pic. See where the top hole that's unused is pressed to offset it? The rear hole where the derailleur screw would to is similarly pressed offset on mine.
Anyway does the derailleur need to have that screw installed? I just don't see how it could work on mine.
Also the new shifters are index shifters.
Thanks.