Why a Gen 1 v8? A LS 4.8 or 5.3 would perform better than much of the old stuff... MSD makes ignition control boxes for em, and carb intakes are available... I imagine a 4.8mor 5.3 would be fairly cheap too...
Barring going to new technology, id go with at least the 327... That 267ci might not make enough power at that low RPM to lug around an S-10 going 45mph... In fact, I would almost like to see what could be done with a 10:1 400ci with economy cam, 2bbl, etc...
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My current Ecotec project...
My last Ecotec project...
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