ok, the very first thing you need to do is determine what you want from this engine. are you building a strong street engine, a street/strip engine, etc. once that is determined, then you can start to select parts for the build.
after you have decided what direction you want to take this engine, then start by tearing down the engine, and inspecting all parts that will be reused for damage, and wear. for instance carefully measure the cylinder bores for roundness, taper, and wear. this will help you determine how far you have to bore the cylinders to get them back into proper shape.
you also want to measure each crank journal for the same things as the cylinder bores.
you are going to want the rods rebuilt to get rid of any bending and twisting that is present from years of operation, and i highly recommend that you replace the rod bolts with ARP bolts as they are they best on the market. in fact i recommend replacing the head bolts and main cap bolts as well with ARP bolts.
you want to spend your money in the right places when building any engine, leave the flashy stuff on the shelf for now, and concentrate on building a solid foundation.