Great advise from these guys, I too would spend the money on regearing and a posi unit; again the 3:73 to one gears work great with these third gens. The engine sounds like a really nice build, except for the heads, I would have spent the money on aluminum high flow heads; they simply can't be beat and they help shed some heat and avoid detonation issues. If money was the deciding factor on not going with aluminum heads, I would have gone with a good set of vortec iron heads, they flow much better than the old double humps.

As a third gen owner myself (1986 IROC Z) I'm partial to them, but it's a great car to make a streetrod out of, great handling and parts are still readily available. Lets see a pic or two of it.........