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Update****
Thanks for all the replies.
After taking a look at what I got myself into, I ended up pulling the old motor out and found a great deal on Craigslist.
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We headed down to Bakersfield Christmas Eve to pick it up for $400 after talking with the owner. Once we got back to our shop with it, we discovered it was actually a Turbo 400 Trans, not a 350! He even threw in an extra small block to the deal and we closed the deal at $400. The next day with some minor troubleshooting, we were able to get it to start within 10 minutes it was a great feeling. 
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We started with a check list of things we would have to do,
(New Battery 700+ CCA, Air Cleaner / Housing, Throttle Cable, Radiator Hoses, Hose Clamps, Thermostat, Alter the Drivershaft, Radiator Fans, Custom Shifter, Gauges, Idler Arm & Steering bushing, New Tires - What do you recommend? , Oil Fuel Plug, Throttle Cable, New Spark Plugs, Exhaust shit, Engine Mounts, Trans mount, Gaskets, 3/8'' Fuel Line, Lock Rear end)
The list seemed to get longer and longer as we went on lol. But so far I paid $400 for the truck, $400 for the used small block and turbo 400 Trans. I was able to pull the stock motor our and get $250 for it locally. So I'm not that deep into it yet. ($550)
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Trying to fit the new 350 was a hassle. We didn't have enough clearance and ended up having to cut out some of the front just to get it in. We did it with no care as we started this project as something to do over winter break. I also found a guy on this forum named Mike, (818) 268-3012 who is the go to man for any D50 parts you may need. I picked up a brand new set of OEM tail lights and after meeting with him I will definitely be giving him a call if I need anything else.
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Once we had the motor in we had clearance issues all over. There was no room to mount the radiator up front, so we thought about running it back to the truck bed, but I really didn't want to go that route. We decided to hold off until summer and hit the firewall in so we can set it up how it is suppose to be. Any recommendations would be helpful again, this is a learning process for us so feel free to say whatever you like. We enjoy hearing peoples feedback positive or negative.
We still want to lock the rear, figure out the shifter, run new fuel line 3/8'', figure out exhaust, tires and driveshaft!
I have video of the whole process once we finish this project over the summer we will post it on Youtube for you guys to check it out.
We were trying to think of a cool name to call it since its now a Chevy, Mitsubishi, Dodge but we used the words "FOR NOW" often and think that is the perfect name for this project.
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