First thing to determine is whether to use a genuine (gennie) original steel body or a fiberglass reproduction body. Same with the frame, original (not particularly recommended because of rust and cracks accumilated over its 77 year life span) or reproduction. It's not particularly difficult to construct your own frame if you do the research and use care, paying attention to detail. I don't think USD$1,500 is going to get you all that far in the whole scope of things, however most hot rod projects are long term, so you wouldn't have to have all the money at the beginning of the projectl. Look at Don's roadster project. He started with the goal of having a running car for USD$3,000. He has far surpassed that figure and isn't finished yet.

There are many books to choose from to begin your education. Here's a google link to get you started...
http://www.google.com/search?hl=en&s...ot+rod&spell=1