i'm luvin' the old skool colour scheme on it too. i'd definately be rockin' that paint on the road. body is in great shape, that body man looks like he knew what he was doing.
personally, i'd just lower it, maybe 5 or 6 inches, roll on some nice 18 or 20" wheels. and if that 2.8 is humming along just fine, then don't mess with it. if it's giving you issues, well then............time to upgrade!
be sure to start a build thread when you get aroud to doing some work to it (give me a heads up if you start a build thread).