Paint needs to go, and I need help!

I want to do all the body work myself to avoid spending a small fortune. I want to get the car down to bare metal to prepare it for paint soon. What tools to I need to strip this car down, it doesn't seem an angle grinder will do all that work. Also, would it be best to go ahead and lay down a coat of rust prohibiting primer to avoid rust inbetween the time the body work is done and the car goes to the paint booth? What will this project cost me roughly.
 
Get a variable low speed grinder. They are about $200. And you will need some really gritty paper...I used 36 grit last summer. It takes paint and bondo off does not throw it up in the air and only scuffs the metal lightly. It is what body shops use. Here is an example link.
http://www.nikotausa.com/catalog/detail.asp?productid=166&subcatid=197


And unless you have a giant compressor, get an electric grinder.
 
We already have some sort of grinder, i am not sure at all what it is, it is a rotating hand tool that plugs in. I believe it is called an angle grinder. We have two different kinds though, one was more rough and more high speed than the other, and the other one kinda has soft bristles. And yes we have a compressor.
 
Why are you taking the car down to bare metal? is it in that bad of shape?

A DA Sander and some 80 grit will do what you want. 36 grit is REALLY coarse! I dont suggest using an electric angle grinder. You will more than likely burn up the bushings in it and you want to make sure it is flat on the car when you take it all off. I suggest you make a new friend in your area with someone that knows a thing or two about body work or you can really screw it up.
 
Has the car been painted more than twice since it came from the factory? If not you dont necessarily have to strip it to bare metal.

Are you doing complete disassembly of the car or just ornaments, door handles, bumpers and stuff? Chemically stripping Ive found to be the easiest way if you are taking everything off. Get some rubber gloves and some aviation paint stripper (has a big airplane on the front) and it peels old paint off like a miracle blade through an apple. I have a 67 coupe thats in the process of being stripped now. It needs every piece of sheet metal made for classic Stangs and then some..I have also used a Dual Action sander with 80 grit and it works fairly well. I wish I had one of those industrial sandblasters though...Those things blow the old paint off like blowing dust off with an air hose!

Since you are doing it yourself you might want to check out the book "How to paint your Mustang" it gives great insight into how to remove stuff, prep the metal, and even how to setup the sprayer if you do it yourself.