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Just came across your thread. I like a lot of what I see and hear! I'm planning on going in a similar direction once I get around to restoring mine.I can sympathize with your plight: my truck also came from my dad, and he welded on the front grille guard, as well as a rear tow hitch. We build them so they can run through anything they can't go over! I also had a crack in my frame, a vertical tear from the bottom that went about halfway up. I drove it for 2 & 1/2 years like that. I'm glad you're going through yours, pulling the body off, cleaning it up. In the long run, you'll be glad you did.As far as painting the frame, silver sounds good with your blue. I'm probably going to do black with my frame, as the truck will be silver.I've also considered a 6.0 LS swap. It's uncanny how similar your build is to where I want to go with mine. All that said, sounds like you have a good plan going forward, the right people helping you, and a large amount of patience and determination.Have you considered the NP 205 for your t-case?
Considering you only have so much of wheel well opening to work with, that tire looks fine if that is going to be the ride height.
Only thing I can think of for your t-case, is get a 2wd 4l80E, and mate it to a divorced NP 205. If not, then perhaps an Atlas is your best bet.
what you find out about the 4l80e? i been doing some research and just trying to get all facts straightened out. from what i understand you can make the 4x4 4l80e work and you can also make the 2wd work. just each one takes a different adapter and maybe a spacer
the front might of been sitting higher due to no motor and springs not settling