cudabit, I'm doing my 68 Road Runner in my 2 car garage and the kicker to that is after I get done working on it, I have to move it over so the wife can park her car in the garage too. So yeah, it can be done and most everyone here does it that way. We all don't own shops or big equipment. Check my sites. You'll see what I'm doing but here's an overall summary:

So far:
-complete teardown of the car
-built a dolly
-replaced everything from wheel housings back
(and I mean everything including frame rails)
-both full factory quarters
To come:
-passenger side rocker replacement (this week)
-full floor replacement (next month)
-place car on a rotisserie and paint (in the fall)

So, you can see that basically anything can be done in a two car garage given proper planning and taking your time. Be honest with yourself in what you think you can handle. Best of luck!!!!

Cheers