I personally would not go for the kit. I enjoy tinkering with guns, replacing parts, small repairs, etc. To put together a 1911 from a kit could be quite a project making sure all the parts fit and work well together. If you get it completed and have problems afterwards, that would be a real dissapointment. (Don't ask me how I know)
I would go for the Colt as the top-shelf choice for your price range and reccommend a Rock Island GI for the entry-level "retro" model.
I have both and they have been very reliable weapons, no problems with either of them.
Next time you are at a gun show take a look at both, mayby one will do the trick.