upgrade the pump, torque converter, sunshell, get the transgo reprogramming kit, servo kit, and add a tranny cooler -you'll be good to go.
Just make sure the used trans you get is chevy bolt pattern, and the correct tailshaft length. Also flush your oil cooler good.
The NP208C is the easy way to go.
The 208 has a bunch going for it. It's light, plentiful, an easy bolt-up, and has the lowest low range of the three common squarebody transfer cases. Just make sure to get one with the proper input spline count.
Don't use Dexron III in it anymore. GM released a service bulletin for Dexron VI. That bulletin calls for Synchromesh fluid in most manual transmissions and transfer cases that originally called for Dexron III. Every one of the major players has a Synchromesh compatible fluid so it's very common.
From orbit on my Android.