The past few days, I taught myself how to weld. I watched a quick tutorial on youtube, grabbed some scrap fenders from a junk yard (he gave them to me for free when I told him why I needed them) and just practiced welding. I was really surprised at how easy it really is. I bought my welder from Home Depot. It's a Lincoln and it cost about $260 and works perfectly for body welding. Now I just need the new pans.
A media blaster is a god send. They really help with stripping paint and surface rust off your body. I've had mine for years, and can't remember what I paid. They are as easy to use as a can of spray paint. Just turn the sucker on and start spraying nice long patterns.
I've been avoiding using any filler on this car, and have found that using a mallet and dow rods have been able to get almost any dent out.
As far as painting goes, I wouldn't do it yourself. I have a nice paint setup in my garage, but I only use it for smaller projects that don't matter too much. When it comes to a classic, do it right. Find a nice sheib paint shop around you and have them do it. You can save a lot of money by doing all the prep work yourself. Media blast it, use some self-etching primer, then prime it the color you want. Give it a couple coats of primer, and take it out to get painted. If you're really on a dime, you can go to Maaco, but you get what you pay for with paint jobs.
With everything listed, you're probably looking at about a solid grand.
$250 for the mig welder
$100 for the sheet metal to replace those rust spots
$50 for the media blaster (a quick google lent a round-about price)
$75 for primer
$15 for mallet and large dow rods
And that leaves a about $500 for a half-way decent paint job. I'm sure you can find all those things cheaper on craigslist, or if you just shop around and find stores that price match.
I hope this helps. Good luck on project, and post lots of pictures. Mine are soon to come.