I personally say for this car, "RUN AWAY!!!" Seriously, you are buying a car that is going to take even more time and a LOT more money to make it decent. You'll put tons of time into the car and realize it will almost never be as nice as the next guy who paid a little more and bought a much more decent car.
I bought a much much better one then that for $1000. Sure, it has a leaky sunroof, but it has urethane bushings, 5 speed, R200 w/3.9 gears, Starion seats, Eibach springs, tokiko struts, etc etc. The point is: keep looking and waiting for the best deal (or at leas a better car anyway) to show up. If you are patient and keep looking, it will.
Hang in there and save your money for a better car.
Davy