That frame is serious...and worth $1200. The painting and decaling at Waterford was easily $700. For the time and money the seller put into it...it's probably even a bit of a loss at that price.

NOS stuff would be very difficult to find and uber-expensive but used '61 Campy Record (yes Record started in '58) is around on eBay and not outrageous. From there a Dremel does wonders and can make it look brand new. You could get the group for $600-$800 leaving yourself with a $2k bike that is second to none and a major prize.