The other guy who has seen the car says above that it is a targa, not a coupe. And what makes you think it is (was) an "S"? Even if the VIN makes it a real "S", the engine was the only thing that made a 911 an "S" and it's long gone on this heap.
I'm sorry, but a rusty '73 targa w/ the wrong motor is not a $12k car. Not even close. It sounds more like a collection of 911 parts that are bolted to each other, and not $12k worth. Whoever made the parts price list above neglected the fact that rusty body parts are worth nil.
I know all about making emotional purchases, (boy do I ever), but I also know that buying the wrong 911 is like that old joke about boats, ie. the 2nd happiest day in your life, etc...
As they say; "Just stand in an ice-cold shower tearing up C-notes and hitting yourself in the face w/ a tire iron. Same effect".
It's bad enough to throw your own $$ away on an unwise purchase, but if it's your Grandma's you will feel horrible. I would anyways. You need someone who knows these cars to lay eyes and hands on this thing, it sounds like you are going by some 100% emotional response to a color or an idea of what is cool, (the car that Steve McQ. drove), and not really approaching it from a sober, mature perspective. I get emotionally involved w/ cars myself, (and I have driven Steve's 911S), and I have to tell you that car purchases require the cold scientific eye of a surgeon. A cancer surgeon. Who knows when something is terminal and has the spine to say so. That takes maturity.
The thing that you learn the hard way from a life with cars is that it is retarded to buy rust buckets. By the time they are repaired properly, you could have bought a nice dry car that is actually worth something. Sorry to be harsh, but this is what you need to hear. As opposed to what you want to hear.