Nick
You can go to the K&K Mfg.(
www.kkmfg.com/) web site and see what the various replacement panels cost, and to give you an idea of what parts are available. It's pretty difficult to guess if that is a reasonable quote as you don't state what will be done for that much money. It's too much if somebody is just going to throw some patches on and it might be under-estimated if it turns out to need everything from the firewall to the tailpan. Chances are if there is quite a bit of obvious rust, there is probably as much that isn't apparent and when you get into a lot of panel replacement, you feel compelled to fix it all, do it right, because you don't want to have to go back for something later. There are many stories around these lists of large amounts of money being spent on resto work, more than the owners ever imagined or care to let their wives find out about. If this shop hasn't worked on these cars before, try to find one that has, at least to get a second estimate.
Richard V