Hey ozzie,
If you want to get that Fender vintage yellow neck look (including colouring the fretboard!) i can recommend dying the whole lot with dilute colortone Amber, then using naughty oil on the back of the neck and Dingotone guitar wax on the fretboard itself. Works a real treat, and the wax holds the colour in nicely on the fretboard.
For the headstock shaping, personally I would go the jigsaw then a dremel sanding drum or half round bastard file to clean it up. After the dremel/file, use some coarse sandpaper (eg 120) to finish shaping and clean off the burns from the dremel.
Good luck - you'll do great. It is more intimidating than actually difficult, especially the round fender shapes.
cheers,
Gav.