You're going to need to give us a lot more info that that.
Your engineering degree means nothing when you're wrenching. I know this because in my engineering degree relates almost nothing to cars. Some of the brightest engineers I work with are as useful as a screen door on a submarine when it comes to wrenching on their cars.
A '97 Prelude can be a great decision or poor decision- it depends on what your idea of a "project car" is.
What's your background look like? What experience do you have working on cars? What tools do you have available? What do you want to accomplish or learn?
I hope you have REALLY deep pockets and a LOT of car building background if you want to build a "fast" Prelude. These cars don't exactly make power easily.How could it be a bad decision. Id like to build a fast good looking car