X2 on the above post.
You will need a good double disk clutch no doubt, unless you are planning on running a turtle speed gear, but then you will not have enough ground or wheel speed to put on a good show.
Since you are running a 1st gen with leaf spring front suspension, i would fab up a set of front traction bars aswell and mount them above the axle housing to prevent leaf spring coil up and bouncing. Bad bouncing will lead to broken parts.
As for a turbo, I would just stick with the stocker for now and get your feet wet in the game and see how you like the sport of pulling first... Its not for everybody.
When you do go for a turbo upgrade, and you plan on doing alot of pulling, I would just go ahead and go for a 2.6 turbo (64-66mm). Another thing i would look into would be to ditch the Rotary injection pump and do a p-pump conversion. Lots of other upgrades would be needed to be competitive overtime, but like i said, start out small and see how you like it first.