I wouldn't worry about the engine internals if, as you say, it is low miles (and if it was previously running well with no strange sounds).
By "basement", do you mean dark, dank, moist & creepy, or temperature-controlled and dry? Makes a HUGE difference in what you are likely to find when you start to dig the parts out!!!
As to what you will "do" with it, only you can decide if you want to go standard, cafe, touring, bobber, or whatever. Each "type" has its benefits...
As far as the core, you are starting on the right track with powdercoating the frame, just make sure to correct any possible discrepancies on it such as bent/broken tabs, etc.
The engine's main outer covers need to come off, and pull the spark plugs, then flush out all the internals with kerosene. Make sure you don't drop out the intermediate cam timing gear, and carefully see if it turns over after that.
Here is a step-by-step on "revival":
Starting a Tiger that’s been sitting awhile.
Too many other possibilities from here, a lot depends on your choice of style/finish...