The later model the better! The 99.5-2000 has all of the factory cooling upgrades including the spin on fan clutch, HO water pump, dual thermostats and the 9 blade fan. The 96ish-98ish has issues with the metal and are prone to cracking in the webs. Relocate the PMD off of the engine, alot of guys locate theirs in the grill/bumper area. Ours is in the airbox. Get rid of every piece of the factory exhaust and the turbo. Diamond eye exhaust and a holset or knock off work well. The 6.5 isn't a power house. We have pulled 18.3-18.7mpg @ 62mph but that goes in the toilet at any faster speed. We do have 4.10's though. Truthfully, when the 6.5 dies a cummins will go in its place but as long as you aren't planning on drag racing it then you will do ok.
all turbo 506 gm blocks were prone to cracking from the piston squirters to the water jacket, all 6.2 and 6.5 were terrible for cracking in the web around the crank itself, i had a 6.2 599 block that the crack actually matched the radius of the crank, was kind of crazy looking, the 506 blocks were also prone to breaking the #2 main cap, 97+ all were the upgraded cooling just that the 99+ changed to spin on clutch, i had my exhaust break about 3 ft from the down pipe so it was not really restricted and i got a whole lot more boost but my fuel mileage was terrible vs having stock exhaust, i have a 99 n/a non squirter 506 with a gm-8 and have gotten 28.8 mpg with it if i run at 60 but average 24 with 4:10 and the oddball 215/85/16, the n/a heads get better mileage but you lose power.
the biggest issue with the 97+ was gm built the blocks too fast with no cure time so they developed stress risers and were the highest in failure in 97.
personally i would get a 93 and if the 599 block dies then get a optimizer 6500 and update the cooling or find a 98+ manual trans truck and put in a optimizer with a db2 mechanical injection