Yea you are correct about the lug count. But some people change out the outer knuckles to get a desired lug pattern. (example, rear axle may be 8 lug and full float while the front could be a Dana 44. So they change the knuckles and lugs up front to match the rear. That way they only buy 1 set of wheels and not 2.)
That's good to hear about the motor. I'd just do the basic rings, bearings, gaskets, and probably a porting on the heads to get more air flow and it should be good to go. A rebuild like that won't hurt your wallet as bad.
Also, if I was building an off road only rig, I'd go either fuel injected or propane. If you have a carburater, you will hate it when you hit a steep hill.
Cool build. keep us updated man and maybe I'll FedEx overnight to you some NC BBQ and Cheerwine, LOL.