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?)
You could always cut up the firewall and set the engine farther back to help out the weight balance. That 472 BB Cadillac is actually pretty light. If you throw an aluminum intake in it, it is only 50 lbs heavier than an all iron sbc, or so I've read.
Why don't you make your own front subframe using a c4 corvette K member & suspension components? I just picked up a whole c4 frame for 850 bucks.
Yes all us engineers are pretentious, or that's what the shop guys at work like to think of us as.
I think LS1/LS2/LS6 is the way to go ! Lightweight, potent in stock form, response to power adder's extremely well, besides you can pick one up off of LS1tech for anywhere from $1200 to $3000 including the ECU as a drop in !