Ok well reading through it looks like you have already made your mind up and taken the £500, personally i would have gone through insurance, but as you have done this please done just re-shell it for the sake of it.
First of all get yoursell a porta power, and get straightening out the worste of the damage then you know where you stand with panels that need to be fixed/changed.
Is the rear 1/4 bent atall if not then it looks like it could be a prety easy repair... If the rear 1/4 isnt gone, then surely you only need to do a bit of straightening with a porta power, then weld in a new rear bottom corner, new rear vallange, part of the boot floor (if it doesnt straighten out with the porto power...) boot, bumper and rear light.
Now obviously thats no where near an ideal situation, but if you have already made the deal and decided you dont want to go through insurance for some strange reason, then get your 'mate' round and get him to help you do the repairs. If your going to repair it yourself i would guess it would cost you more than your 'mates' given you as you will have to buy some tools, but if taking it to a bodyshop your going to get a lot bigger bill thank the £500 youv got...
Edited by Tomf, 15 May 2009 - 09:13 PM.