Blue on top, do you mean the silicone pipe that the PO has used as an induction pipe? Works great and is not affected by weather conditions. It's quite expensive, but at the last shop i worked at i used to be able to get as much of it as i wanted. Awesome looking truck, mate! Well done on your...
Seems like a lot of money to spend on rust. I would keep looking around if i were you. Even if you got it for $1800-2000 you'd still have to pump money into treating the rust.
Keep us posted!
Joe