1984 toyota 4x4, is it a deal?

Should i buy this truck? My friends 1984 sr5 4x4 long bed ext cab, 220000 miles, the lights dont work right, the 4x4 doesnt engage. She wants $500 as is, or $800 fixed 4x4 and lights. Im gonna go for the fixed $800. Is it worth it? It needs new paint too. I also need to kno the average price for a used 22R or 22RE. also the 5 speed tranny, how much to replace that?