Dredging this back up, seeing as how I'm getting closer to being able to afford to actually start messing with it.
Lately I've found myself leaning more towards an LS again, ( That blue twin turbo 5.3 K10 didn't help. ) And now I've got a friend wanting to build a LS powered go-fast toy, and between both of us we think we can handle the wiring.
So currently the "plans" are as follows; (Not including cosmetics)
86 K5,
4 or maybe 6 inch lift,
LS/TH400,
stock 10 bolts,
35's, or maybe military 37's.
And later on, as funds allow, replacing the TH400 with an NV4500, and the rear 10 bolt with a full float 14 and 8 lug outers on the front, possibly even a Detroit locker.
I've basically ruled out getting a D60 for the front, as it would be the most expensive single part by far.
Most people have told me to not even bother changing the rear, unless I plan to run 40's or bigger, at this point I basically want a 14 just for the ability to run 8 lug wheels, since I've got loads of them, and the only set of 6 lug wheels are the rallys that are on it now.