I have a 1999 or 2000 M2 Stumpjumper (blue/orange) frame. Specialized made an adapter plate that attached to a hole in the dropout and the V-brake mount. I don’t know if the same adapter plate can be used on older M2 frames but that might be worth a try? Is that hole on your dropout threaded for a rack mount? If it’s drilled through without threading then that is a good indication the same adapter plate might work for you too.
I got mine on a special order through Evans Cycles for £25 or so, although that was 4 years ago. Could be worth asking?
I’ve got a few pics here I could send you by email, I’d post them here but they aren’t on my Flickr account. adammonline AT gmail DOT com