Okay, you said to give you our opinions so I want to throw in my .02
1. I can not believe you call that car ugly, that is a very nice car, it may need lots of detail work, but is still a great looking car.
2. I like that car alot, I have a thing for bench seat big block cars

3. What wheels are you going to run? If you are going day two, I say go for aluminum slots, they were the rage back then, along with tourqe thrust D's (another great choice for a black car) and the slots are being reproduced so no need to try and find another set that are in great shape, american racing makes them now.
3. Since you are "preserving" the original motor, why not throw a LS6, LS7, or a L88! if you want to go nastolgic, or a 496/540/555 (take your pick) big block and have it dressed up as an L78?
What ever you do, it should be a nice fun car.
bill (you did what to a 32,000 mile L78!

)