get a stroker kit for a 360. if it where me and was racing it, lower it a little but not to where your scrappin it over a bump. i would also upgrade the suspension after you get the engine work and body work done.

 

Do what makes YOU happy. You will be putting your time and money into it.
I will say that I personaly would NEVER lower anything.I just don't like lowered vehicles, but thats me. I like sleepers.

 

Well you have a 2wd so lowering would be better than a lift, a 2wd lifted truck is almost useless, unless you convert to a 4x4. right now my rear end is lowered 4 inches and im rolling the steelies 15 inch with the 60 series tire. i removed all trim even the v6 emblem. im wanting to get rims this summer cragar soft 8s to exact, but if you had a 4x4 i'd say lift it 3 in the back and 5 in the front!!!!