Aside from the sweat involved in getting the metal back where it should be, it looks like a good start on a nice ride. The rest of it is little more than finding deals on the right parts just like any other project. She'd likely take $1000 but I'd still try negotiation tactics mentioned by the others. If she wants it to be saved, it wouldn't make sense to turn away a truly interested party just to let it rot out back over a few dollars.
It may be worth considering taking a buddy along to "see what he may be helping with" and make statements along the lines of "It'll be a fair bit of work, but it's worth it". The owner may be receptive to such a display of interest and come down on the dollar figure.