OH MY HELL! I just looked at the picture you posted and about died. Except for the paint, it is nearly identical to my 1956 Chebby shortbed stepside with the small back window. I was wanting to know if you used the original frame or a newer frame and mounted the body on it? Also, how did you do the power steeing? I have power brakes, but still have the old armstrong steering that I would love to lose. Oh, and I used the original frame and everything just bolted up. I rearched and used the original 56 front springs. I had to fabricate drop brackets for the transfer case crossmember and turn and shorten the steering drag link, but it was like installing a kit.
My 56 has the drive train out of a 72 Jimmy (4 speed sm435, NP205, 12 bolt rear and Dana 44 front). My gear ratios are now 3.08 but soon to be changed to full floating 14 bolt in rear and D44 front with 8 lugs and 4.10:1 ratio. I will be doing a lot of towing with mine and would recommend you also get the 3/4 ton axles if you are towing a good size trailer. 33 inch tires go well with 3.73's but use a 4.10 at least for 35 inch tires while towing. A limited slip works well if you are towing anywhere in the snow, but stay away from a locker on snowy roads. They are downright scary in the snow.
I think your truck looks nice the way it is, but if you want 33's I wouldn't lift it more than a couple of inches. I just used longer shackles in the front and a 2 inch block in the rear. Or you can do a shckle flip in the rear. My understanding of shackle flips is that it doesn't effect towin at all. If you used a later model frame you could use one of the Off Road Design flip kits. They are easy and inexpensive and I think it would probably be better for towing than blocks. If you used the original frame I have an old article I can give you from a club called The National Chevy/GMC Trucking Club that shows how to do a shackle flip on old trucks. Yes, believe it or not, ORD was not the first to do the shackle flip. Members of the above mentioned club were doing flips back in the late 70's and early 80's. Anyway, I agree with Beater K20, you don't want a huge lift if you are going to tow a lot.
Some people will tell you soft springs are bad for towing, especially in the rear. But they now have systems such as the Super Springs that don't change the ride at all until you put a load on your truck. Super Springs can be found on the internet.They cost about $230 and work really well on my friends truck.
A well built 700r4 is a beautiful thing. Yea, you don't tow in overdrive with them, but it's sure nice to have the OD when there's nothing behind you. I have an NP205 in two of my rigs, the 1956 and my 72 Blazer. I've never had a 208 or 203 so I can't comment on them, except to say I sure love the 205. Other than a little leakage on the driveway that was easy to fix with a reseal kit I've never had a lick of trouble with them.
It was cool to see someone elses early Chebby project. Great work! Let me know how to do my power steering will ya?