Re: LB vs SB, is one better than the other for towing?
If your going to tow, I agree with everyone else. Go with the long bed. I would also check the gearing before you do the 700R4 swap. You will probably need 373's to tow. I recently put a 700R4 in my 68 GMC long bed and a drive shaft from an 86 Suburban (one piece), fit perfect. (Used a conversion joint at rear axle- length was perfect).
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