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I'll be looking at a rusty BJ8 this saturday, in about the same condition. I'm in the Rochester area- so I guess there is more than 1 rusty A-H around. I'm in the middle of a rusty 70 MGB/GT where you could see the rt front wheel from the right front seat. I decided that it is my practice car, I bought a mig welder and putting it back together.
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I too started restoring a '75 MGB. When complete bought a Healey. It took me 12 years to restore the Healey. If I had to do it over, I would purchase a Jule frame (wasn't available when I started the project). You could also purchase individual frame rails, but with holes in the top, I bet the rails are shot. With a Jule frame you'll have no rust to deal with, at least not on the frame. It is a very rewarding project. Stop working on it when it gets too frustrating. Take satisfaction in completing steps along the way. Enjoy the trip. You'll be rewarded in the end.
Good Luck