Sorted out the issue with the VHX gauges. It would randomly turn on by itself whenever it's connected to the control box with the key off, and would not turn on with the ignition on. Plugged the display to the control box in my Firebird and it worked fine. Turned out that I was using the power on/acc on terminals on the control box to power the GPS speedo module, and the gauges did not like that. Moved the power leads for the GPS module off the control box, and voila, problem solved.
Display powered up, all functions operated correctly.
Had decent weather in Houston, so I decided to roll the engine out the driveway and gave it the VHT rebuild process.
Removed the stock truck oil pan and replaced it with Holley 302-1 pan. The internals looks OK, with cross hatch patterns still visible in all cylinders.
Painted the block Ford blue, and mated it up with the 4l60e.
After a lot of cursing, therapy sessions with the BFH, the engine/trans are in. Had to remove the stock transmission channel for the transmission to clear.
My observations so far on the engine/trans fitment. The engine sits too far back with the DSE engine mounts, 1" forward will be nice. Right now there is less than 1/8" gap between the pass head and the firewall, and there is no room to run the stock transmission dipstick. DSE supplied some nice 3/16" thick aluminum spacers to adjust the engine height and I had 3 spacers installed. I may have enough room between the oil pan and the crossmember to lower the engine a bit more. That will help with the clearance.
Also, if anyone is installing the DSE front suspension, it's best to install the engine mounts before the control arms installed. The front mounting bolt for the engine mount is partially blocked by the lower control arm. I was able to install it without removing the arm, but it was a PITA process.