Is this a good buy?

Hey guys

So this lady called me saying she has a Valiant for sale. 1964 4 door with a loud engine knock (I told her its probably a thrown rod) anyways, she is asking $1000 for it but will sell it for $500 to me (I helped her alot and gave her tips to sell the car). Anyways, does this look like a $500 car? If i rebuild the engine, where can I get a nice kit and also would i need to machine it? If all fails, can I part it out and get my money back?

http://i685.photobucket.com/albums/vv219/hassibi1/00x0x_j43fKPzHiMp_600x450_zpsffc091ba.jpg