[Chris1529]

A 7.5" rearend would not last. a well built 8.8 is what most people run. I am not 100% sure if you can use a 9", but you probably can.
If you want to run a carb, an 85 is the best way to go, but it is stick only. all 86 are fuel injected.
Heads do require attention.
It would not be worth your while to use a T-5. You need a sfi bell housing, adjustable cluth and a Jerico, or similar trans, and a probably a long brand shifter.