As the title says. Body work or engine parts. By body isn't too bad. Has rust on the quarters.. should I get that knocked out or should I start ordering engine parts?
I would atleast sand off the rust and prime and paint it so it doesnt get worse. who cares about the body work until you're ready to paint is what I say, my car has multiple dings and scratches that I dont wanna deal with until I get readt to do and complete the exterior
The body rusting away and falling apart is just weight reduction.
On a serious note, I would grind away all the rust and cover it with a good primer and some cheap paint to seal it, for now, just like cborden suggested. Then you can worry about making the engine better.
Spot paint it and use a heater of some kind(heat gun, blow dryer, etc), to aid in the drying process. Rust only gets worse and spreads. I would cut it off ASAP, regardless of how cold it is.