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Head gaskets go out.... Especially if the truck is 26 years old. All you have to do is fix the head gasket. I'm assuming that you pulled over when you started to see the temperature rise? If you didn't,then you may now have a warped head. Putting a "bigger" engine in the truck has nothing to do with fixing the problem. Eventually head gaskets blow,regardless of how big or small the engine is.

 

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Your pinion angle should have changed in the lift.

Acceleration issue... Does it sound like the engine is under a load? Is this why your not getting the acceleration? Or a fuel supply issue ie: pump, filter, pinched fuel line.

 

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The problem may be that there isn't any compensation for the 35" tires in the differentials.
With the large 35" diameter tires and the assumed standard differential gear ratios, the 305 may not have enough power to pull the truck.
The fix may be to change the gear ratios to a lower (higher numerically) ratio to make up for the tires.
If this is the case then, yes, a bigger engine could make a difference, with the standard gear ratios.

 

Any more than 32" get 4.56's, less get 4.10's. This will help alot!

 

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