The bigget problem you are going to have on a restoration project of a Jeep that age is the frame. Make sure the frame is not toally rusted out. A little rust, or osme bad sopts are ok, because you'll be taking it down to the frame anyway on such a project, and you can weld on repair patches on the frame. But it the frame is totally shot, it will cost you $2000 to $2500 for a new frame.

Bodies being rusted are OK, cause you can replace hose with a fiberglass body that will alst forever.

Axles are OK, cause you'll probably be upgrading those anyway.

Rebuilding an AMC 304 is not a big deal, and you should be able to get a total rebuild for less than $1500.

1977 CJ-7, fiberglass body, AMC 360 w/ headers, DUI ignition, Edelbrock intake and Holley 4150 carb, TF999, Dana 300, 4.56 gears lockers, York air comp, 4" susp lift, 2" body lift, BFG 35" M-T tires, Megashifter, AGR pump & box, REP8000 winch.