My assessment of the car on a scale from 1 to 10: It is in pretty good shape for such an old car. Better condition than my Rabbit, cosmetically speaking as a whole - a 7 or so. Exterior paint is kinda faded, and a bit oxidised - 4. The body is super straight - 9. Some trim is bent or dinged, but nothing major, still pretty shiny - 7. I didn't see any major rust, but I didn't get underneath the car - 8. All the panels are straight and close well, body gaps are even - 9. Interior wise: The dash is in surprisingly good shape; I only noticed one major crack, and there didn't really seem to be lots of warping around it - 5. I was surprised by the carpet, it is in very good shape - 8. The guages look nice, though I forgot to check whether all were functioning properly - so I won't rate them. Upholstery seemed pretty good except for the driver's seat which of course is torn - 4.
I didn't actually drive the car, so mechanically I will just pass on to you what I noticed and what Will said. He put alot of new parts in the engine - worth the asking price alone. It has dealer installed A/C, not sure if it works well, Will may be able to expound on that. The car doesn't smoke from the exhaust, it smokes through the breather tube. Obviously it has poor compression in one fo the cylinders, so there is likely some blowby going on there. Will said the driveline behaves "good" so I think with the engine repaired it should be a good car.
It seems worth the asking price to me.