Well, I'll say this - you're paying on par with A/C work...
I've prepared a few dozen A/C estimates - they usually always touch the $1,200 to $1,400 range, including things like flushes, new freon, driers, valves, etc... I can believe that with an older car (a classic,) the parts will run more due of course to less demand, few parts on shelves, etc. I don't think you're being gouged, at least not EXCESSIVELY (I'm sure a tech said "Give me a few extra hours to compensate for broken bolts, etc") Ask if they can give you a detailed estimate, and I can tell you better what you're getting for your money, and what is simply mark-up. Also ask their labor rate (if you dont already know.)
I feel your pain on the "He said it was fine and it wasn't" topic. Unfortunately the guy I bought my mopar from knew exactly squat on cars. He knew he had it "restored" and "painted," but knew nothing else than that. He also figured his 3,000 dollars spent on "restoring and painting" the car could be directly added to what he paid for the car itself. So when I got it, I really wan't able to be surprised to learn that he had no idea why it wouldn't start or why the brakes were out, nor was I shocked to see things like my A/C ducting missing or the absolute cluster f*** of wires under the dash, or the burnt connectors under the hood. The shear fact that my 'Cuda ran at all when I got it became amazing to me, the more I learned!
Lemme see an estimate on that A/C work and I can tell you more. Unfortunately A/C work isn't something you can really do in your garage because of the way freon has to be handled, and because of the care that must be taken in keeping contaminents out of the components and lines.
Jeff