I'd go with the heads, cam, intake and carburetor swap. That'll get you the power that you need. From there, change the rear end and control arms. Add Mickey Thompson ET streets and say hello to the 12's.
rear gear swap. its the best power to cash ratio mod out there that you will feel. I just went from a 2.73 HW gear to a 3.45 gear. Nice difference. And I didnt loose any MPG either. To my surprise. But look into gears.
What are the details on your ride? auto/maunal, etc.
Joe E.
Gears are a great first mod. I think you can get all the same offerings for your 7.5" rear that the later model guys get with 8.8" rears. 3.73 is a great all around gear.
I'd swap in an 8.8 rear with 3.73s or 4.10s. I wouldn't put a dime in the 7.5". They're weak. If it's a stick car with a carb, you could go with a Weiand Stealth or Edelbrock RPM intake and a little better cam. If it's a factory Automatic with the CFI induction, you're very limited to what you can do without swapping it out for a carb setup.
hmmm, low miles, however, you've got the flat tappet cam engine, not the roller engine. If you're handy with a wrench, I'd pick up an 87+roller 5.0 and carb it and replace the engine.