I think if I was going to do that much work I'd go with a throttle body fuel injection and an electronic ignition. For insulation closed cell spray foam insulation is the best since it seals all air leaks and it is unaffected by humidity. It also ad rigidity to the walls and can help quiet the rig when going down the road. Check on eBay and you will find that the spray foam is not that expensive. Just make sure that you run all of your electrical wires before you spray the foam. This looks like a major project so just take it in steps and try not to get discouraged.