Wow, what a find, that's awesome, I love the color. I know of a 71 golf with original CA blue plates that the seller is thinking of selling, I've got first dibs on it. It's very rare that you find an original 02 that hasn't been molested in some way. You are on your way to molesting (I call it upgrading) your 70 02 with the 5 speed conversion. The tii is way too much of a time warp to do any upgrades to it.
Delia is right, do contact the magazines, BMW mobile tradition about your tii
My story is similiar to yours, I saw a 70 E3 2800 on the street in LA in front of the owners house, left a note on it that if they wanted to sell it to contact me. They did and I bought it on XMAS day in 04. I bought the car for $300 with no knowledge of the previous history of this car. Sellers wife inherited it from her father. She looked high maintenance (drove a new E46, husband drove a S class Benz), she wanted nothing to do with a car that had no AC, power steering or manual gearbox and her kids weren't interested in it. Get this, I bought it without a key (PO lost it) so I didn't even know if the car ran (he claims it did). Had it towed to Peter Sliskovich's shop, they hotwired it and the car fired right over. When I bought it, I didn't even realize it was Euro spec. I missed the speedo was in KM's and I didn't notice no side marker lights. At that time I was living in San Diego and I dropped off the 2800 at Bill Holmes shop for him to sort out. Bill believes that the mileage on the odometer is original, 88,000 KM or a little over 54,000 miles. He believes this due to the following, the starter is original for that era; the alternator is original (black Bosch sticker from the factory), original water and fuel hoses, and hose clamps for that era, no rust under the car. The lack of wear and tear on the car (there are no dents on this car, except for one tiny one in the back bumper) is another sign. Usually a car this old will have gone through a numerous life cycle of parts such as; water pumps, alternators, starters, etc.... and this car has the original parts that came from the factory. Bill calls this car a "time warp". It had extensive sun damage from being parked out in the So Cal sun. I'll take sun damage any day compared to salt damage.
Needless to say, I'm keeping this 2800 original, I have a 73 Bavaria that is my upgrade car, (Weber's, Alpina's, 5 speed, etc..) Bill Holmes sorted it out mechanically, Carl Nelson supplied many a part, and coupe King did the interior restoration and repaint in the original color, granada, it looks awesome. It will be at Bimmerfest next weekend in Santa Barbara.
Just picture the linked 2800 to be granada, complete with coupe wheels to be my 2800 http://www.seniorsix.org/photos/otherimages/bmw2800_fromBMWAG_b.jpg
Keep us updated on the progress of your tii and I look forward to seeing it at Bay Area 02 swap and show next month.
G-Man
74 tii (many upgrades)
73 Bavaria
70 2800