Lots of Raleigh-knowledge here who can help in ID'ing this.

When I saw picture 2, my heart sank, but then it was buoyed by the 3rd picture. There are probably going to be two opinions in this forum in varying quantities: 1. yikes, and 2. cost-be-damned. I fall in the "yikes" category.

If it were me, I would strip everything off it and clean the frame thoroughly---with sand paper and steel wool around the rusty bits. At that point, I'd take it to someone who knows how to fix frames (like a local framebuilder) to get his opinion and an estimate on price.

My guess is that you will come out financially ahead if you strip the parts, clean them up, and then patiently (over the next six months or so) search for a frame from the same year +/- a few. Free is not a bad price for all the parts you just got, though. You could find a frame for less than $100 easily.

If you want to be way ahead financially, strip the parts, clean them, and sell them.