Dennis,
I am going to bed! I have been up almost 23 hours now and am tired. lol!
Motorcycle LED lights will likely be fine. As you pointed out; Not like you are going to do a lot of night driving. Seen my fair share of super bright motorcycle lights!
Oil cooler question is an engine subject. "Is bigger better?" Not necessarily. If you plan to run your stock engine; Yes, you want to keep the engine as cool as possible.
That could include oil cooler(s), top end oiling system, fans, whatever. I know summers down in Texas get damn hot!
Is it likely you will get this car roadworthy and licensed for under $500? No.
Unless you got a lot of stuff laying around in your garage you can use, and you flirt real nice with the inspector.
:p
Steve