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Really sounds like a floating ground somewhere - I had a very similar effect on the Civilian C30 I bought. With a bad/weak/missing ground the power will back feed in ways you don't expect. Check the right side lighting grounds by the fixtures - it only takes bad apple one to make it fail like...
I'm going out on a limb but I'm guessing the "this thing" is the whole truck - sounds like he's fixin' to turn it into a full trail buggy, full cage, chopped or removed: fenders, hood, portions of the bed...
And I would expect that considering the differences in the power bands - the shift points are probably totally different too. The transmission will probably need a whole different valve body on the bottom end. Also, you might need to change your final drive ratio to account for the higher...
What I meant by going away from GM power, is that I'm going Cummins, donor truck came with a BB 454 V8 gasser in front of a three-speed - and got just a hair over 7MPG on the 300 mile recovery trip. My 40' Gillig transit bus got 8MPG on it's recovery from Oregon, it weighs in over 20klbs...
Don't know about others, but I'm going away from GM power on my rig - I do know that SS member "cucvnut" received the 454 out of my donor truck, probably shoot him an email to find out what his plans are. He also has a build thread here that he picks at.