I started similar project some 3 years ago, with a 19 years old Rev5 A500. I've got challenged by a usual "bet buddy" with ironic support of few other friends which still can't accept the fact A500 could display this very HTML page.
In short, everything is already said - you can't move an inch forward unless you get an accelerator. For A500 there are some 30+ designs, but generally only few of them are top-class (Derringer, A530, VXL30, Viper530, PPS040-500). Top class means top price. For instance, I got my A530 fully functional after 2 years of constant search. At last it was a faulty unit generously delivered from a member of this forum, which I have recently repaired in AMIGACENTER. With 8Mb FASTRAM, SCSI controller and 68030 @ 40Mhz it is argubly the most complete A500 accelerator set available (this is subject of discussion, many would bias Viper). This piece or something similar should permit smooth Workbench 3.1 installation and form fair basis for further system expansion.
In my case, I went for GVP because I thought it would be almost impossible to match/find both affordable and capable HDD controller in one box and faster CPU with extra RAM in other box.
Since SCSI drives are hard to acquire in one piece for a decent price, I got a 2Gb drive just for making headstart with GVP A530. My final solution include SCSI-to-IDE converter and IDE-to-CompactFlash converter. Few forum members have succesfuly applied this layout, using all benfits of modern solid-state mass storage (lower power consumption, temperature, lifecycle and shock resistancy coupled with superior transfer rate performance).
Stable storage system on A500 will bring the system a step closer towards the networking part. For that issue, I'm shooting on clockport adapter with SubWay USB adapter. Once configured with new bug-check version of Poseidon USB stack, it will (I hope) allow at least 50Kbytes per second on 40Mhz A500 (of course this requires USB-to Ethernet adapter).
Anyway, good luck on project, keep us informed on further progress.