New pistons / re-balance?

Not sure I understand why, but if this is a NEED and not a WANT then I will be on my way to the balance shop before this gets buttoned up.

What parts other than the internal reciprocating/rotating parts do I take to them? It depends on the torque converter you're using. If it's a nuetral balance convertor you need to bring your aftermarket flexplate (B&M makes one for this application) your crank, rods, pistons, pins, pin locks, rings and harmonic damper.

Does this mean that the motor needs to be intenally balanced?

No.

Can the motor be balanced and still use an external balancer?

Yes.

If both are an option whats the difference both performance and cost?

To internally balance a factory external ballanced engine will require a nuetrally balanced harmonic damper and the machinist will most likely need to add plugs of heavy metal to the crank counter weights. This is very expensive and really not necessary in your application.

Please help continue to straiten me out here. Still soaking all this in.

Good questions, don't be embarrassed. Unless your using stock pistons, the weight and hence the balance have been changed. Running an out of balance engine is hard on your bearings, crank, rods, cam, cam chain, etc.