Your opponent is helping you plan your set-up? I would be suspicious if he starts suggesting things like a solid-axle front suspension or a 2bbl carb for the BB Caddy motor!
Seriously, though, it sounds like good friendly competition. I think you are definately headed in the right direction with the build. The T-56 is longer and heavier than the stock tranny (I assume?), so it will give you a little better weight distribution when coupled with aluminum heads. Have you thought about other ways to reduce front end weight such as manual steering, plastic radiator, etc.? You could also flare the fenders to fit wider tires after you lower the stance.
After the final race, you guys should trade cars and run them again. (double or nothing?)
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