Nice starting point mate, if I were you I would do all that I could to convert it to manual and get a manual license.
Surely you know a friend/uncle or someone over 21 who can drive manual and help you learn. You will thank yourself in the long run :)
I think you should choose the colour that you like the most. We are not going to be driving the car, you are !
As Taz explained above, when you rub the car back you will most likely encounter a few high and low spots in the panels that need dealing with. The car will most likely need a bit of beating and some filler before primer. A good way to find these spots is the method Taz described called "guidecoating". This is done by spraying a light "mist" coat of acrylic paint (from a pressure pack or similar), and then rubbing the paint off the panel with a flat block and sandpaper. Small amounts of paint will be left in the low spots and the paint will be removed in the higher spots. Sometimes you will rub through to bare steel in the really high spots.
An example of guidecoat;
Hope this helps,
Dougal