Ok that's a little more info. 

Hardwood floors are dusty and messy but not hard to redo. (good drum and flat sanders, plastic sheeting and tape, and vaccum) It's really fairly easy.

Is the basement walls floor concrete ??  If it is. That too is a "fixable" situation. Timbers- blocking- jacks and pouring extensions to raise the level of the house is doable. A drain is a couple days of fugly work, cement saw to cut thru the concrete floor trench outside, and digging for the drain lines but not high tech work. If it were me,, I would have the trackhoe dig a big trench all the way around the outside walls down to basement floor level,, put in a good drain line around the parimeter of the basement walls, then spray foam the basement walls and back fill with good gravel all the way around the drain tile.

As to the bones, is the floor joists on 16"-18" or 24" centers ? Are the floor joists 2x8's or 2 x 10's    Walls?  are the studs 2x4's, If they are I'm pretty sure the wood is real 2x4's, much better than what passes for todays 2x4'. 

Balloon framing which your house might be is a little different but long as the wall studs are good, not that big a difference in construction.  

Plaster/lath,, as I mentioned is just lipstick. Messy to remove to get to the wall studs but it is not technical in the least.

Know you mentioned the kitchen cabinets..  But you'ver heard, what's old is new again?  It applies to kitchen cabinets too.  The "in thing" right now is those old "farm kitchen sinks" the ones where it was one big "tub" and the porcilen (sp) runs down the face. And people are spending alot of money buying cabinets that have that "old farmhouse" look to them. If you're looking at redoing,, insulating, wiring etc..  One thought is carefully take out the kitchen cabinets, get them down to wood, maybe update with the use of lighting etc, additional updates, redo the cabinets and reuse them.

I'd suggest grabbing some magazines on "redo's" and farmhouse looks,, etc.. and seeing what can be done.  I'd do that before picking up a hammer.

Main question is do you like the home and Character of the home ?? 

2nd question, good bones? Sounds like from your description it is. 

3rd  You didn't mention "family" may or not be part of the equation??

4th  Your skills and ability levels. 

5th Time ?  willing to spend the time to save a bunch of money ?? 

If your a single guy,(or small family)  and have a "clean area" in the house for cooking sleeping,  You would be suprised how much can be accomplished inside during a winter. (for interior work)

here,, few ideas,, wander around some on the sites..

http://www.kitchens.com/kitchen-tours/regional-and-period-styles/farmhouse.aspx?ekmensel=c580fa7b_646_0_5962_19

This is the best for looking at how to redo and make old new again..

http://search.thisoldhouse.com/search.html?type=et:gallery;&Ntt=Kitchen&src=toh

Here's a google link to find before/after to see what is possible..

http://images.google.com/images?um=1&hl=en&safe=off&tbs=isch%3A1&sa=1&q=before+and+after+farm+house+remodel+pictures&btnG=Search&start=0

What I will suggest for the outside of the house is "hardiboard" or cement board. As the name suggests it is mostly concrete. Cuts, nails, fits, just like wood,, but is imperiable, will not rot, shrink, swell, or attract bugs.  Just dusty when cutting.  It comes in about any style you can think of.