All great points above!!
One thing you might consider is what you're looking for. If you want a project, this is a great start, assuming the price is right and you can do most of the work yourself. Are you looking for a pristine end result? or can you live with a little 'patina'? If you are not looking for a project and in fact do want a pristine end result, you may be dollars ahead buying what you want and just holding off for a good deal. I've seen some fantastic buys in the mid to upper teens.
One thing to remember; parts and labor (if you need to hire someone) are usually not negotiable but buying a used car from an owner who needs to move it, especially in this economy, is very negotiable. Keep that in mind, if you do go for the project one too; selling an un-running vehicle that needs interior in this market, maybe more, brakes, pan, etc., is not an easy deal. Your buyers decrease rapidly, take advantage of that, you can always increase your offer.
From the pictures and your describtion, I personally would be in the 7.5 to 8k range. If I fell in love with it, it had the guages I wanted, and the pan was good, I may go a little higher. If it can't be started and driven, you have to assume the worst, that goes with the complete drive line.
Dave