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Up to you - if you want a project car, this should like it. $800 and sounds like it has beat to hell and back, don't know - for me, $800 is a little rich for an older car. Plus, you could probably get a mint condition GT-S for not much more.
Carby is fine - good DD. Fun? Depends on your definition of fun. As long as the car is in good running condition - you have some options.
The thing that turns me off on that is the rust. Anytime you see rust perforate a panel, that means there might be some hidden cancer elsewhere - not worth the effort with others choices out there, unless this IS the car you must to have.
Good Luck, either way.
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2002 Corolla S, 1.8L 1ZZ-FE VVT-i
2003 Matrix XRS, 1.8L 2ZZ-GE, VVTL-i (RIP)
2009 Matrix XRS, 2.4L 2AZ-FE VVT-i
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