Lance you know what it takes to be competitive in CAM and road racing...

Take the purchase price, multiply that by 5 and you've got yourself a FUN car, heck throw a turbo on the 6 and an 8.8 rear and it'd be a fun little sleeper.
To answer some of your questions. A cage and subframe connectors do wonders for unibody cars. I'm not sure if this early of a falcon will take mustang bolt ons or not but that seems like the way to go to keep the budget in check. It's a great looking car but to be competitive I think you'd just be using the shell.
Life's short, I say you do it and post up all the info here!