[Root2812]

I also vote stock frame and mustang II. I got the Fatman Fabrications kit for about $2000 and I am very happy with it. With a little extra boxing your stock frame will handle the power of that motor. I have a 5.3 in mine so I'm about 40-50hp behind you.

The ford 8.8 rear end is a good choice. That's why I picked it. The 8.8 is just a smidge smaller than the Ford 9inch and still has 31 spline axles. Some guys say the C-clip axles are weak but that's only if you plan to beat the piss out of it. Then you can get a pit to get rid of the c-clips. Mine came from a 2000 explorer that had a 5.0 V8 so it has 3.73 gears and fords version of Posi. Plus they can have rear dick brakes on them.

Like you I wanted lower but not laying frame. Bags are a lot more money and I just don't like the laid out look. I opted for the TCI leaf Spring kit. Its nearly all bolt on and can be done in a day. I think the built in drop was 3-4 inches over stock and you can always use lowering blocks later if you want. Shipped from Speedway Motors it was about $650.

You can check out my build thread to see al these things since that's what I used. I'd say I have about $3000 in my suspension but its all new including brakes and the power steering rack. Truth is that a S10 swap will be cheaper, but it will take more fabrication work and time. Not to mention that S10s were not performance vehicles. You see a lot of guys swap the s10 suspension to bags, if you do that you are right back up there in price. I feel my set up will out handle a stock S10.

One last thing, I like all builds but to me personally the s10 swap kills the flavor of a classic truck. I just like the idea of modified stock. Everyone has an opinion and that's mine. Good luck on your build.