Turns out it was a nugget, and the more I looked for rust, the more I found. Ended up parting it, and save for a new one. Good thing I made break-even on the parts!
meow we're one year later and I picked up a new project! This will be a "keep it simple" kind of approach.
I've started adding lightness. Header-back titanium exhaust, lightweight seats, manual rack, light weight cassette player (lol) and a few more things. It's just a 1.6 engine, so the 1.8 engine from James 1 will live on in this car. Supermiata lightweight 1.6 flywheel and clutch should make up a little bit of the added weight from the 1.8.
I've added VST Stage 2 coilovers and a Racing Beat front sway bar along with the TE37V and the car is a go-cart!
