Opportunity to buy an '81 diesel 5 speed from junkyard....? comments/suggestions??

[automan9482]

Hello all,
I have an opportunity to buy a 1981 Volkswagen Rabbit L 5-door, diesel 5 speed w/ sliding metal sunroof from my local Pull-a-Part, and I am looking for some pertinent helpful hints or suggestions. The car is, of course, not in great shape, but it is in good shape for what it is.
What I Know About the Car:
The salvage yard has a dealer license, so I can feasibly purchase his vehicle for scrap value (??) and I do have a place to put it until such time when I am ready to start work on it.
1981 Westmoreland diesel 5 speed, 5 door, original (faded) medium red ext./dark red cloth int., metal sunroof, A/C, "L" trim package, remnants of factory roof rack, rear defog and pieces of rear wiper.
NO STRUCTURAL RUST; only very minor rust in the dog legs-rocker section/ 2 spots in the UPPER rocker panels/door sills. Car also has two small dime sized rust holes in the lower A pillars (typical), probably rust behind window gaskets, but the undercarriage/rockers/strut towers/trunk & floors are SOLID. It has a sticker for rust-proofing when it was new.
Car has obviously not run since 1997, as it still has its last registered tag.
Interior is a mess, full of trash, little water but not flooded, some trim parts gone, but overall in OK condition. Headliner is dirty but still there and up.
Glass and body panels are intact and complete.
Wheels are gone.
Some exterior trim is missing.
There is no visible sign of any previous accident damage. All exterior parts are OEM, no rust/buckles/mismatched paint/misalignment in any major unibody component.
Front bumper/grille are missing.
Taillights have been removed in little bitty pieces.
Timing belt is exposed and IS INTACT.
Most major mechanical under hood components (block/head, transaxle, cooling system) seem to be intact. Cap, rotor, wires, and air cleaner are gone.
Don't remember exactly, but car has relatively low miles, like 120K.
I've always wanted a Rabbit; first experience was with dad's '77 Rabbit 5 door, 5 speed as a kid....
What I Don't Know:
Why it ended up at the junkyard.
What do I look for specifically to buy/reject 1981 Rabbit diesel junkyard car?
Do I even want this particular brand, or should I run away screaming?
Feasibility of purchasing said vehicle? MPG's vs. restoration?
Parts availability?
I do have a couple of immediate donor cars ('80 Rabbit C gas 5 door, '84 Rabbit L gas 3 door, and at least 3 VW mechanic specialists) for parts.
Mods/upgrades possibilities? I'd want to keep it as stock as possible....
Can anyone out there back this up as a good or bad decision? I.E., experience.
Any useful info would be greatly appreciated.

Thanks!
automan9482

[1STTIMER]

If you got a couple of grand go for it ! I,m building an 81 now, and it sounds like that one is restorable . But count on replacing everything ! The are no plugs etc on a diesel , see if the injection pump is there because you need that for a core. I've been working on mine for about two years . My List is shorter to say what I did not replace , alternator , starter , battery . Thats it ! GOOD LUCK