Buying an 89 GT for $600. Think its worth it?

The other day i was working at my boss's house clearing trees and i noticed an 89 GT sitting next door with no plates. I walked over, knocked on the door and asked who owned it and a lady in her 60-70's said it was hers. We got to talking and she said told me she tried to sell it with no luck. I checked it over thoroughly. The paint is 2 tone blue with silver. 100% stock with a moonroof, rotted front fender, minor rust on the passenger rear quarter on the wheel well, quarter sized rust spot on the hatch.(Not bad for Massachusetts salt) No other rust that i could find (i jacked up the car and got under it). The interior is gray and is absolutely mint. Shes got the owners manual. Odometer read 70,000 and she told me she had owned it since 91 and it had 10,000 when she got it. She had it in craigslist for $1800 and someone came to test drive it and for some reason the transmission let go. The guy wasnt messing around beating on it because she was with him. Its an AOD. So ever since she took it off craigslist and just has had it sitting. She said when you put it into drive it stalls...maybe the TV cable out of adjustment? Either way i wanna convert it to a 5 speed, i have most of the stuff for it already. So you guys think i got a good deal? Sorry i dont have pics or i would post them, ill try to get some ASAP.

Best part is i bought an N.O.S dry kit off a friend for $60, came complete, so ill start small and upgrade to wet after i buy some bolt ons. Another friend with an 03 Cobra gave me his stock injectors & MAF so i have to mod it right away i guess? If i blow up the motor, another friend with a complete 351w hes willing to just give me. i guess its good to know friends with stangs...let me know what you guys think..thanks

thanks for all the responses guys, Seems like it was a good deal. I havent bought it yet, bills are killing me but in 2 weeks she'll be mine. I talked to the lady and she said since i seemed really interested in it & seemed to have a passion for it she would hold on to it for me. She told me the ad in craigslist hasnt been renewed in over a month and its not on a road where any traffic would see it. Theres no for sale sign on it either so i think its safe to say shes mine. Ill take pictures as soon as she comes home and post them up here. Then every extra penny i have is gonna go towards this car. Ive been without a stang now for almost a year, ive got the itch to mod. Its so bad im buyin mods that im getting killer deals on before i even have the car.