Step 1: Talk them down. Talk them down some more. I paid $700 for my clean-ish 93 GT, and i overpaid.
Step 2: Remove motor/trans/engine harness/ecu
Step 3: Put something else in there. KL 2.5 V6, FE3 2.0 i4, BP 1.8 i4, whatever you want, really. None are hard.
Step 4: Make it handle. Don't bother going as full stupid as i did with mine, just get some good bushings in there, strut bars (they work in these cars), springs and struts of your choice. You won't get much wider than 205s under the stock bodywork. Stick with 15" wheels.
Step 5: Make it stop. If it has drums in the back, grab a brake setup off of a GT. If it has the smaller brakes up front, grab the setup off of a GT. You'll need the hub to go with it, as the "large" and "small" brakes both use the same calipers, just spaced for bigger rotors in the case of the large.
If it were me personally doing this thing... I'd be heading to a junkyard looking for a 2.5 V6 from a Millenia (KLG4), transmission from a V6 Probe GT or MX3 GS, transmission crossmember and all four motor mounts from said MX3 GS, and then building a megasquirt. Boost optional. Should dip 13s without boost without much work.
Either depower the stock rack, or swap for a 323 manual rack. Save weight, space, and the steering ratio of the stock rack is ridiculous anyways. I'll be running a depowered MX3 rack in mine, but that may be a bit too tight in the end.
Then i'd talk to CGHstang and see how his experiment in fitting MX6/Probe struts to the Escort worked out. If that worked well, i'd be grabbing some Tokico Illuminas for the front, and HPs for the back, throw on some Megan Racing Springs. Go have a blast.