The gutter around my trunk is badly rusted, Does this need to be cut out and replaced? and if so, is that part  available?    

i'm building a '67 also. mine is rusted through in places and will be replaced.the top edge is replaced with the deck panel below rear window and the passengers side edge is on my new quater panel.if you just want to replace the drip rail it is available. check with OPG original parts group,year-one, or goodmark.good luck on your project i'm just getting my frame back together now.all new front end tie-rods,bushings 1 1/4,sway bar,2" drop disc setup drop from classic performance,tubular rear upper and lower control arms with sway bar also cpp, eaton posi in the original 10 bolt rear case. and 4 new coil springs. not a cheap hobby! LOL