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Why buy a car that needs a lot of work if you have never really worked on a car?  At least you were compitent enough to remove the engine, ill give you that.  1. pain the engine bay, 2. Get the engine running good, then make it look nice (powder-coating = nut in pants).  3. Get new seats or talk to importsextreme guys on leather. Personally, I don't like that blue, its not a stock color (I like to keep things a normal as possible appearance wise).  If you got the dinero, i would go with either the smoke or black stock color. Sounds like you are going to have a blast working on it, so I won't give too hard of a time, just as long as your intensions are good, not like the previous owner(s). 
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