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I whole heartedly agree with those who have said DON'T START the engine. That is probably one of the last things you need to pay attention to. You need to drop the engine & tranny & put them aside to get to all the other stuff.
You have A LOT OF RUST on that car - A LOT. I'd go with the advise to take it apart to take stock of the project. Start sourcing parts (like that hood - they can be had usually for pretty cheap) from everywhere and keep your eyes peeled constantly for them. Usually it's far more efficient to get good used or new parts than to fix the rust on them. Those you can't find, fix the rust.
I'm putting a larger engine & 915 trans in mine & have upgraded the suspension, brakes, & pretty much everything else. But I'm storing the original parts in case I sell it sometime and the buyer wants to restore it. I've also accumulated a lot of parts to rebuild the original engine.
I bought my car for $3k originally. It had almost no really major rust issues. I did replace the front pan and front fenders. They could have been repaired, but it was much cheaper and efficient to buy new (front pan) or used (front fenders). I gofered a lot of the parts & work. Right now I have about $20K in the car as far as parts & work are concerned. Of course this is over a long period of time acquiring parts and finding good deals on work. I think $50K is a high estimate to end up with a very good car - not a concours car. I would think you should seriously consider somewhere in the $30K to $40K range though.
Good luck & have fun.
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Marv Evans
'69 911E
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