Its possible to get TII Turbo Dodges for cheap too. Last summer I saw a Shelby Daytona at a local used car dealership with a TII and 5spd for $900 and this car was in good shape and ran well. I would have bought it but they wanted cash, and I didn't have the 900 they wanted.
I know the TIII has the most stock hp, but I wouldn't advise buying this car unless you plan on selling the TIII specific parts to make money, otherwise you might spend a lot of time searching for a head. Does the owner know how bad the head is? I assume it is cracked, can it be repaired still? I wouldn't want to suggest you buy this car unless you can have the head repaired, or unless you are prepared to go on a wild goose hunt.
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Patrick
05 SRT-4: Daily Driver, 11.9@117.4
88 Aries: 2.2L Turbo (Powered by Megasquirt II)