Welcome! We'd love to see some pictures of what you have going on. It sounds like a great truck and great powertrain setup. You've got a beefy drivetrain, too. I'd like to disclaim that I'm giving my personal opinions that may or may not conflict with others' opinions, but everyone's opinionated so it happens. First of all, a little bit of it has to do with your plans for the truck. Are you gonna haul, tow, or use it off-road? I totally agree with your position on the NP205. It'll modernize your 4x4 setup and be tough as nails doing it. My position on the motor is rebuild it and spruce it up some. It's low mileage so you may have some time left before it needs something. It's cool that you have a 400. Relatively few people do since they were only made for a few years. It's cheaper, and you can do it yourself more expediently with fewer headaches. There are a lot of great square bodies and older GM cars and trucks in general built with the LS as the powerplant. It's a good motor, but I think you have something neat going on already, and you should use the same mantra for the motor as you are the paint job. You can read on here about the adaptations that are required for an LS and transmission to fit/work correctly, and it's quite a checklist, especially considering your vehicle is fully OBDII when you get done so all the electronics have to be working to get a tuneable motor. @
dougbert has a very thorough build thread you can look at. Again, I think you'd come out cheaper and completed sooner with fewer headaches and a strong, dependable motor keeping what you have. Personally, I don't subscribe to the LS craze because it's done a lot, and I don't like to do what other people are doing, not because it's bad but just because I like to keep things as original as they can be practically maintained. Plus, I don't trust the GM (or really any automaker) of the last 20 years so I rebel by supporting their powerplant of yesteryear. The transmission maybe another story. It sounds like you're wanting highway use in hauling and/or towing, and you want to quell the fuel demands of your short gear ratio. I understand that, and the TH400 is a fantastic, ridiculously strong transmission, but it doesn't meet those requirements. As far as a 700R4 goes, I'm thinking no. Maybe a late model one that's rebuilt with a shift kit, but I don't think it's the best idea with a built 400, and I don't think it should even be an idea with an LS. If it was a G/B Body or a Class 1 truck, I would be all for it, but you have a beefed up Class 2 truck with a lot of cubes and off-road capability so I question the longevity of even a built one. If it were me, I'd consider taking the money I saved on the LS swap and putting it into a fresh 4L80E and a standalone control module. There's your overdrive, and there's your rigidity. It's practically as tried and true as the TH400. The aspects that don't usually translate in transmission swaps are driveshaft lengths, spline count, and stuff of that nature. I don't know for certain what it would entail going from a TH400/203 to a 4L80E/205, but there are people who frequent the forum more experienced and older than me. I think for what you have, what you'd potentially want to do, and what I assume you want the truck to feel like when you're done, a SBC 400/4L80E/NP205 setup would really bring your truck to life and keep it as simple as it is now. You could consider whether or not your engine needs a full on rebuild or if you have like say a rear main seal going out or a bad gasket somewhere. I'll venture a guess that the motor is mint on the inside, especially if you have good oil pressure and you don't see any oil blow-by. If that's the case, you might could bypass dealing with the bottom end and focus on the heads, finding a nice dual plane intake that fits your carb or the carb you want to get, picking a good fitting set of headers, and selecting a cam that'll really mesh with whatever voracity of head work you want to do and what you want it to perform like ( @
rich weyand ). You're probably looking at four hundred dollars max for the cam/lifters, intake, and headers. The headwork is up to you, but at a minimum, I would do a spring and valve seal job at home just to ensure they're fresh and ready to take on the cam you choose. Be cheap, though. Hunt for deals on eBay or Craigslist. Use the same strategy for a transmission core or rebuilt unit, the standalone module, and the transfer case.