well, the body looks pretty rough and with overheating issues, you can imagine a new head gasket and possible internal damage.
I'd look elsewhere, get a solid body you won't be embarrassed driving it and something that has a solid engine.
If you want a project, start with something decent and worth something. There are many cars out there to look at. Get some experience with looking at cars. After you look at 20 of them, you'll be in a better position to judge. Never look at a car at night or in the rain, you won't be seeing the reality of the situation. In fact, look at the car and then come back and look at it. You'll catch things that you glossed over the first time.
You can drop a bunch of money in these things quickly.
there are lots of pics posted on vwvortex: the gallery or things like this post below (just one of many) you scroll down to where the pics start and then the continue into the infinite.
VWvortex Forums: MK1 pic post.....coolest thread ever
check out solidinside's post to soldiertashi below
you want some whack vw's check out the dopeshizz post in vw vortex