That's the difference between C and K GMT400's; C1500 is coil spring, K1500 is torsion bar.
Yes, the 8.5" will hold up - IF you don't abuse it!
But what's the fun in that? You should probably start hunting a 9.5" SF.
And yeah; that actual HD radiator isn't going to fit, nor will the shroud, etc. so you'll want at least the wide core radiator from any of the 1500-2500-3500 models and the accompanying shroud. Some 1500's came with the big radiator already, depending on model. If you're buying new then just go ahead and get the 3500 / 454 spec radiator for your year model.
I can't recall but I'm pretty sure pulling the tailshaft from that 4L80E requires full disassembly. I wish I knew for sure, but I bet someone on here does know. Hell if you can fit it as-is under your C1500 I say do that and just have your driveshaft shortened, it's a no-go though if you have a 1 piece shaft as the bolt-on front yoke design of that transmission depends on the slip joint being at the carrier bearing.
Richard