SD, I would try that ign system the way it is (its an Accel dist and coil with one of the Ford ignition modules wired to it).  It should work fine like that.  From what I was told long ago, the modules work as an ignition amplifier, sending a stronger signal to the coil. If you dont run somekind of ign box, you might need a special coil and ballast resistor so it doesnt hurt the dist. If you want to change the coil, that box should run any coil you want to use.

 Yes you can paint the alt, but take it over to Kragen (or somewhere) and have it tested first. Just to be sure its good before you spend the time to make it pretty.

 The thermostat housing fittings are the water outlets.  One goes overboard (dump line) and the other will feed the headers with water (trough a T valve).  Water lines to the motor will be on the front of the motor (where the water pump would bolt on).  I think I might have some somewhere around here (in a box somewhere). If not Billy can make you a set real quick when you go over there to get the blocks for the rails. 

Ok, Thanks guys! Propless really saved my ass on the majority of everything I needed! Iv been looking at engine pictures to try and figure out the water setup (alot different from my V-Drive with water logs) but its kind of hard to make out each part with everything in the way. Id love to buy one of the water valves thats controlled by RPMs for the headers, but thats still out of my price range! If anyone has a picture of the front of the motor thats a little more simple and I can make out the cooling system, that'd be great! Other than than, just trying to find a used starter for this season really. Calling Tom today about a used PTO and Im the highest bidder for one on ebay at the moment. I might have even found a scoop I can use on my friends lawnmower. (yah, I know, were pretty oakie up here. He has a CD player and a trailer he pulls full of subs  )

I have a BBC PTO for 1350 Driveline too.