318/XE262/#302 heads and what stall converter/rear end

Those are good points Chief.

I would do the rear before a converter, or both if affordable. 3.55 would be real nice for all around drive-ability, either 8 1/4" rear or 8 3/4"...probably the latter because he might want to keep the small bolt pattern to match the front small bolt KH discs.

Also, if he shimmed the rocker shafts the pushrod length should be ok.