Painting Questions

My '92 Prelude's white paint is wearing in some places and the body is rusted in other places and getting worse. So I want to get it painted sometime in the next year. I'd like to put a body kit on it as well. I was thinking a candy apple blue or gun metal paint. How much would a decent paint job cost from a shop. My mechanic who happens to be my neighbor has a nice paint booth in his warehouse type garage and so I am going to talk to him. If he does it, I was thinking that I could do most of the work other than the actual painting. Will I need to sand the paint down or can I just paint over what's there? He always gives me a good deal on labor and stuff. Also while I'm asking questions, how hard is it to install a body kit, I don't really like paying people to do something I can do myself, my neighbor has a lift, so I think if worst comes to worst I could use that and get it done. I'd also like to shave the license plate and put it on the bumper. I have just been throwing Ideas around in my head and am wondering how much this will all cost. I'm thinking that after a kit and paint(if my neighbor does it while I do as much as I can) it will cost about $1500 give or take.

Thanks alot,
Nick