The '96-newer L29 "Vortec" 7.4L is much superior to the "Gen 5" TBI 7.4L. Even so, mileage won't be anything to write home about. 200K miles shouldn't be an immediate problem, but if you're towing long distances, I'd absolutely inspect the timing chain slop by turning the crank while watching the distributor rotor. I'd be looking at HOT IDLE oil pressure using a real, "mechanical" oil pressure gauge. Check for leaks at the engine oil-cooler hoses. Verify that the Power Steering cooler doesn't leak--my PS cooler is nothing more than some formed tubing looped back and forth INSIDE the front of the left frame-rail. It vibrated, wore through, and puked fluid.
Even so, the Vortec L29 heads are NOT that great. Fine for low-rpm use in a pickup. Don't expect to get anywhere at high RPM, they're done at 5K.
Distributors have been a problem. The gear at the bottom wears; the bushings wear. In stock form, the 7.4L distributor is different from the 5.0 and 5.7 engine distributors because the 7.4L uses a "Thermal Washer" above the distributor gear that the others don't have. I'm not sure that aftermarket distributors use the washer, but then they're generally not PLASTIC HOUSINGS, either. Problem with the aftermarket replacements is that they're Chinese knockoffs and have their own design failures.
Overall, a far-better engine than the Ford V-10.
The transmission should be a 4L80E; the overdrive version of the TH400. Not as strong as the Allison in later trucks, but pretty stout.
I'd expect a 10.5" full-float rear axle. Again, pretty stout.
I bought a 7.4L in a '97 K2500 just over a year ago. I haven't put many miles on it, I bought it to plow my driveway with.