Okay, so my house was built in 1963 and the original vanity light is still in the bathroom.

The light is hot-wired into the system somehow, and is turned on and off at the light itself.
All of the wiring in the house is the "old school" style of grounding, as the ground wire is wrapped around the romex where the romex enters the metal box and is grounded to the box. I'm assuming the wiring going to that vanity light is similar.

What I want to do is use that wiring, and install another vanity light, then split the wire and run a GFI outlet next to the vanity sink, with a switch that turns the vanity light on and off.

I'm pretty handy when it comes to work around the house, is this over my head??

Thanks!

If your home had newer wiring I'd say sure, tackle this project. But the fact the house is that old and you want to do the GFI plugs, I'd say let a pro do it and you watch and ask questions. If in doubt I always hire a pro and "pay" to get lessons whether it's plumbing lessons or electrical lessons. It's worth it in the end and the job is done right and to code. I just paid a plumber to "teach" me how to change out a sillcock faucet. Well worth the money.

I see where you're coming from. Unfortunately I don't have any close friends who are licensed electricians! I really don't have a budget for this job, and I have a feeling if I do hire out he/she will want to do waaay more work than I'm willing to do right now.

Your plan sounds fine, and well worth the effort to get a new vanity light along with a GFI receptacle. Whether you can do this project or not is up to you and your abilities working with wiring, boxes, splices, etc.

What concerns me is your explanation of how the Romex and ground wire is treated.

The ground wire is wrapped around the cable and then clamped at the box?

I have seen this done before, and was done by someone that did not know how to treat the ground wire. And was probably done by an electrician that did not know how to work with Romex, as the ground wire was wrapped just like BX was done.

At least there is a ground wire, and it is clamped. Just that if there is any one loose clamp, the grounding is compromised for he remaining circuit.

Back to your project, if your not sure if you can do it, you may want to get yourself a How To Wire book with photos and detailed description of how to wire outlets switches, etc. There is much to explain that can be done here.

Be sure to see your local electrical inspector for a permit and inspection.