Jon,
A few years back I picked up an abused C-1 for $50. Probably same vintage. It had been the victim of an argument between ex-friends and had several holes poked thru along the waterline with a sharp welders hammer. I bought some thin fiberglass non woven mat and some polyester resin at the local auto parts shop. After sanding with a ROS I laid on a few layers inside and out over each hole and several layers and fill coats to restore the ends. I use it for flat water paddling and haven't had any problems with delaminating , cracking or leaking. I did add some styrofoam blocks under the rear deck just in case. For paint I hit Wal-mart, Nothing special and it holds up fine.
The project was a great learning experience and my kids still use it for all manor of horseplay.
I say "go for it!"