I can't speak to the HP question, but I know several V8 guys around here have run a stock rear for quite a while without blowing it up. It depends a lot on how well the truck hooks. You put some traction aids on it, run slicks, etc and it won't last long.
The ratio question, you have quite a few options. You can pull the third member and switch it out pretty easy. Just pulling from the different ratios LUVs came from you can find 3.42, 3.73, 4.10, and 4.56. The third member from an Isuzu Impulse will also fit and has 3.90 gears. If you find one from a Turbo RWD Impulse it will also have a limited slip in it, though that might not be such a good idea behind a V8.
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