I used to sell auto parts, a guy brought a rotor in like that looked like that. He bought it from us a few months earlier and wanted it warrantied. He said that happen in a matter of minutes. Right.
Depends on what disc brake kit you use. If you get axles for the drum brakes (stock lenght), you will need to get a disc brake kit made for stock length axles.
The bolck will be much hotter that the coolant temp. It's not unusual for the oil temp to get near 300 F. Heads and around the cylinders will get up inthe hundreds of degrees F.
Lightning Force Performance makes a very nice 3/8" hubcentric spacer with extended reach lug nuts. Costs around $80 for two spacers and 10 ER lug nuts. I had a set and they were very high quality.
Lightning Force Performance
Do a lot of research on the net and do the gears yourself. Its not that hard, you do need a few specialized tools that are not expensive. If your old bearings are good, the most it will cost you is ~$250 for gear set, parts and tools.
Take a class and learn how to paint it yourself. You'll have access to the teachers for adivce and can use the schools paint booth. You will need to pull the engine to paint the bay or it will look like crap everytime you open it. It would be easier and less expensive to just get a good...