If you're thinking of a "project" car, I'll give you one very important piece of advice: do _not_ buy anything that has even the slightest bit of rust or body damage. Bodywork is the single biggest bitch I've seen when working on a car, and rust repair is the mother of all expense when working on a project. Last year I bought a 1976 914 that is quite clean for about $3,500 as a "rolling restoration" project. It runs fine right now but it needs a lot of work to be brought back to showroom. I could fix all the mechanical problems for under $2,000. $2,000 wouldn't even begin to cover the minimal bodywork that needs to be done. The paint is shot and it needs a re-spray which will probably run me around $5,000 because the only way to do a re-spray properly is to have everything acid-dipped and then get each part painted separately. Properly re-painting a car pretty much requires that the car be disassembled. (That's not to mention the new rear floorpan and the fender repairs that need to be done.)
Find something with a good body but a blown up engine and tranny, much less trouble and expense in the long run.
ZV