[Frankenstang65]

First, I would say congratualtuions on starting a mustang project, with time and patience, you'll have it rollin' down the highway in no time. Believe me, it's not as complicated as it may seem, and it is definately worth the effort.
Second, it sounds like you're on the right track. The first thing you have to do when starting a project in arm yourself with as much information as you can get your hands on. This message board is a great place to start. Pick up a ford shop manual for 1965 and start to thumb through it a little when you have the chance, you'll be amazed at the info you can pick up. I would also recomend the "Mustang Restoration Handbook" from HP books. How about getting a subscription to Mustang and Fords magazine? This is also a great resource because it is filled with "how-to" articles and feature cars that you can get ideas/inspiration from.
As MetalHead pointed out, we do need some more info if you are looking for answers relating to your specific project.

In response to what mikoc stated, I would have to respectfully disagree. Even though he did make some good points about some legitimate safety concerns dealings with older Mustangs, I don't think that these should be enough to stop a parent from giving a child a classic mustang as a gift. Especially one built by thier own hands. The truth is, that the future of the mustang hobby lies in the youth, and that by getting them involved and interested, you are passing on the torch of both knowledge and experience. The younger demographic in this hobby is growing all the time, and so are the ideas that they have been able to contribute. Fixing up old mustangs is not just about the mechanics, I've found that there is much more to be gained from getting involved in the hobby. If your daughter really wants the car, then get her to help you in the fix-up process. I know several young girls who have been very involved in the work that has been done on the mustangs they drive daily. Take the time to make the car as safe and reliable as you can while you restore it, and then trust that your daughter has enough of an attatchment to it to be safe and responsible. Like mikoc suggested, this will make sure "she respects it for what it is".

Whew!...I guess it's time to get off my soap box...but I hope that helped anyways....let me know what you guys think.

Good Luck with the project!!!