You didn't say whether it's aircooled or w/c, so I'll assume a/c. As 
a comparison, there is currently an '80 Westy for sale locally for 
$5500. This is in CDN $, and also in an area where VWs command a high 
price, so subtract 35-40% for exchange rate, and then some. I'd be 
*very* cautious of a dealer who offers take off the repair cost, unless they
are a VW dealer, and know for sure what the problem is.
$800 doesn't go very far if you're paying for labour. By the number 
of small things you mention that are broken, it also sounds like it 
may not be in such good shape after all. The Westfalia interior is 
extremely durable, so is often not a good indication of overall 
condition. It's also easy to get excited by all the cool stuff in a 
Westy and overlook some of the problems it may have. (speaking from 
experience here.... ;)

Good Luck!

> 	I am looking at purchasing a 1983 Westfalia.  I would
> appreciate any input on the situation.  
> 	The interior is in good shape, body and paint in excellent
> shape.  The engine is not holding pressure in the third cylinder, and
> the local VW mechanic estimates $800 to fix.  The odometer doesn't work, but 
> the speedometer does.  A new windshield is needed sometime in the near
> future, and there is no radio or antenna.  Brakes, tranny (manual),
> shocks, CV joints, etc. are all in good shape.  The dealer is 
> asking $4900, but said he will take off $800 for the repair of the bad 
> cylinder.  The van has 124,000 miles showing on the non-functional 
> odometer.
> 	Is this a decent price considering the condition and age of the 
> van?  FYI I am planning to travel in this vehicle when I graduate in 
> June.  Also, if anyone in the San Luis Obispo, CA area is interested in 
> looking at the van with me, it would be greatly appreciated.
> 
> Thanks in advance,
> 
> Matt  
> 
> 
Shawn & Janis Wright
'88 Westy (336k) '85 Jetta TD (360k)
VWnut@smus.bc.ca (swright@smus.bc.ca)
http://www.islandnet.com/~swright/vw.html