My 85 W250 had a 4 inch lift with 33s. It was about perfect. Easy to get into, a good bit extra ground clearance, and perfect for the 360 4bbl and 4 speed to get it to scoot.
If it has family connections. I would keep it near as stock as possible...but definitely get atleast a 360 Magnum in there.
I am assuming it is a 318 auto...that is what my Ramchager that is in my 1st Gen thread was. Reliable as all heck and returned decent fuel mileage...but it wasn't great for towing, but would keep up with traffic. Now, put it in 4lo and shshe would crawl around mother earth anywhere you pointed her.
Can't wait to see how this progresses. Makes me wish I wouldn't have sold mine...as the prices if these went way up
Edit: I thought that said family let it go...now I see friend. I am tired and this short week at work has been very long.