You're definitely gonna need to upgrade your hub, and when it comes to the best ones, Phil Wood is definitely up there. Quality has its cost, but if you've got the cash, by all means make that investment. For a decent alternative that'll save you some cash, Surly hubs will offer you above average performance at under a hundred bucks.
Phil Wood High Flange Flip-Flop Track Hub,
Buy It Now at Joyride Cycles, $215
Surly 1-Speed Rear Hub
Buy It Now at JensonUSA, $56