Major advice needed

["Larry S. Duplissey (Skip)" <skipdup@domain.elided>]

Hello all,

I have a few questions/request for advice I hope some of you will not mind
helping me with.  I became interested in Scout II’s about a year ago and since
then I have kept up with the Digest and tech talk on the BB as best as I
could.  I have learned A LOT about binders in that time, but so far I have
only
elementary knowledge of mechanics...but I am learning fast as I can (practice
makes perfect...right?).  A few months ago I finally found and bought my first
Scout II:

-  Stock & original 1979 Scout II
-  V-304A 
-  727 Auto
-  Dana 20 T-Case
-  Dana 44’s w/3.73 Gears, Lock-O-Matic hubs, and some sort of limited slip in
back.
-  31" x 10.5" x 15" tires

I am now beginning the process of returning this vehicle to perfect running
condition, or as close as I can.  I will use it for a daily driver but still
must have good off-road capabilities.  Overall the vehicle is in darn good
shape, with the normal problems, which are the basis for my questions
below.  I
will do the basic work, but will have the more advanced work (which I am sure
is basic to some of you) done by a professional.  Knowing that the vehicle is
20 years old, I would rather replace many parts now instead of perpetually
replacing a part here and a part there.  i.e. if one headlight goes out, I
replace both because the other is surely about to go.  I am by no means rich,
but I don't mind spending money on the Scout either (although I must admit, I
have no idea what some of this is going to cost).  O.K. enough history.  This
is what I need help with:

1.  What to do with my axles/suspension.  Known problems: front wheel bearings
shot, (probable) rear driver side bent axle, ball joint looseness, clicking
hubs, dry rotted/worn bushing everywhere, and who knows what else.  I have
decided to go with a 2" triangle lift with all new bushings, u-bolts, etc.  I
have not decided on shocks.  I also don't know what else to have done while I
have the axles apart.  For that, I don't even really know what is in there.
 Is
there a check list for axle rebuilds somewhere out there that I have missed? 
Or, is there at least a check list of items to check while you are in there? 
Should I replace the u-joints, locker, ring and pinion, other bearings, etc.? 
What about a full floating axle in back so I don't have to worry about another
bent one?  What is the consensus on which hubs I should put in?  Should I just
buy new axles and skip an extensive re-build altogether.  I would rather do it
all now instead of one piece here, one there, etc.  This will be my daily
driver and I do not savor the thought of being stranded.  

2.  Steering.  I know the above repairs will help my steering problems to some
extent.  However, my power steering pump keeps all of its fluid until I get on
the interstate, where it promptly dumps all of it out.  I can not tell where
the leak is coming from.  Would it be prudent to go ahead and rebuild/replace
the pump & steering gear (they both look original and I can't tell if they are
bad).  Also, would it hurt to go ahead and replace the steering linkage? 
Again, they are both original and I have to believe considerably worn.  I am
going to install a straight-steer, new rag joint, and that steering u-joint
coupler thing, as the latter two are visually worn.

3.  Mileage.  Right now I get a steady 8 MPG city and highway.  Is this
normal?  I just had my carb. adjusted so I do not believe that to be the
problem.  Would it help to up-grade my ignition?  I do plan on upgrading
engines to a 345 or hopefully a 392 as soon as I can, probably not in the
immediate future.  I don't want to spend any money on items for the 304 that
can not be transferred to the new engine.  What about switching to a manual
5-speed OD?  I don't want to go any lower than the 3.73 gears.  Or, do I just
accept the fact that this will be my mileage?  BTW, my compression ranges from
115 to 140.

I hope I have not angered anyone or broken any rules with the length and/or
depth of this post.  I have tried to research these items on my own through
individual’s web pages, the Binder Bulletin, and the posts here, but have been
unsuccessful.  I truly appreciate any help or insight any of you can give. 

Thanks,
Skip