I checked out the '87 Raider after work today...

It's got the off-road package;the gear box and transfer case seemed to be working fine.
Tried 4wd high and low without any issues.
It's a 5 speed manual. The shifting was positive and all gears provided the amount of torque I'd expect from a 2.6L.
The exhaust pipe and muffler were shot, huge holes in the muffler.
Upon starting the rig cold, huge plumes of white smoke came out of the holes in the muffler. I'm thinking valves, but perhaps someone knows the significance of white smoke during the first 5 minutes of starting. The smoke vanished after it warmed up.
The engine was covered in oil, so it was hard to tell where it is leaking from.
The radiator had only sight amounts of calcification inside.
I think there may be at least one air intake leak, because when I sealed off the air intake to the carb., the engine kept running.
The front windscreen also has a crack.
The inside is fairly clean, with a driver's bouncy seat.
I offered the lady $500. She was going to talk it over with her husband and give me a call in the next day or so.

From the information I've provided, would $500 be a decent price?
Thanks for all the info. fellas!