I got my 71 VW Bus for 600 bucks, no motor, severe window rot (no metal under neath the front window, you could poke your finger through it) and mint condition interior, no body damage, and two holes in the floor.
Two and a half years later, there's now a motor that took two summers of me and my dad to build up (he's been working on VWs since the early 60s, and very skilled in fiberglass work/repairs) and all holes and body rust (not surface rust) is complete.
Let me tell you, it's cost about another 1000 USD moneys and two people working pretty damn hard, but it sure is possible. It now runs perfectly, has brand new New Old Stock giant disc breaks, perfect interior and completely rebuilt front window sill, can't even tell it wasn't there 2 years ago.
People are gonna tell you it costs a hell of a lot of money and time, and that's true...but it sure as hell isn't impossible. I know my VW van can't compare to a 68 Chavelle, but the concept is the same; we didn't have a hell of a lot of money to put into it, but we worked our ASSES off, and it happened. Now, it is my dream car (yeah, don't give a shit if you think VWs suck) and i couldn't be happier.
I got it sophomore year in high school and now as a freshman in college, i've got the best camp-mobile/sex trolly i could have ever wanted. Good luck to you, i've got a buddy who goes to school with me who has a '68 Chavelle, 4 speed stick shift, with one of those fake leather type tops. I did it for car of the year when i was on the school newspaper, i know i have an assload of pictures of it, i'll post them when i can find them. Took him 4 years to restore it, and now that thing is mint, the only thing that sucks is the 12mpg.
EDIT: well, i couldn't find any pictures of it, but luckily i saved every issue of the school newspaper and snapped a shot from it. Btw, it's a 68 Chevelle Malibu.
RE EDIT: well fuck me, camera isn't working. Oh well.