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You've certainly got your work cut out for you! I'm about a year into a complete restoration of a 1970 targa, which is my first ever restoration. My rust issues weren't quite as serious as yours, but I've been doing a lot of panel cutting, replacing and welding. Welding's not such a difficult skill to pick up. I've become adequate, if not stellar pretty quickly. From that perspective I think my best advice would be to tear it down as completely and quickly as you can to survey the real damages. Don't sink much money into anything until you know what you have. The paint and undercoating are likely to be hiding all kinds of surprises.
Good luck!
Mike
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Michael Caterino
Clemson, SC
1970 tangerine (=Tiger Orange) 'T' targa
restoration: mk911.blogspot.com
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