1) Good criteria, you'll for sure find a good bug in that league.
2) Bit of a grey area for me still, as far as i know the 74 1300 was the AR engine (which i have in my 1303) not too sure if it came in the regular 74 also or not, but i'm sure ther ewas a 1300 equivalent in the 74 if not you can alwasy find a 1300 engine andswap it.
3) Buy it if you can find one,.. almost everything can be repaired
4) Sounds typical for most pepl in PK. both my beetles costed me around 175 (and i have reciepts to prove it) but i sold them bth for around 150, afterall thay are used cars and WILL lose value.... People have got to stop being so bloody greedy over here.