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Half of a two car garage will work fine as long as you orgainize properly and make provisions for storing the body in some fashion when not working on it. You will probably need a little inside storage somewhere (part of a closet or something) to keep some things like the assembled instrument panel and seats out of the way.
I did a body off restoration of a Corvette in half of a 2-car garage (built a rolling buck to hold the body and the frame rolled under it). Even painted it in the garage although I did have to boot my wifes car out for a couple days to do that. I also built my ERA in half of a garage, although I didn't have to separate the body from the frame as the chassis was powder coated and everything else could be done without separating them. I did paint it elsewhere.
My ERA was a retirement project - my advice would be to do it. Getting up and down off the floor 20 to 30 times a day is great activity to keep you limber. A few cuts, smashed fingers and knots on the head will also re-expand your daily vocabulary to where the wife just rolls her eyes and walks away to leave you alone with it.
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