Well the answer to the regulator really depends on your power goals and thus how the fuel system will end up long term. I just installed a new AC Delco on mine, but it will probably never exceed 500hp at sea level which is why I dropped an in tank 320 in and was done. You can make a lot of juice these days on the modern in tank offerings. Do you intend to swap the cam? The intake looks like a big bottleneck to me as well, so intake alone will get you more legs, but a cam would help a lot too to add some usable RPM up top. Megasquirt is an excellent EMS, since you'll be able to get it tuned properly you should have nothing to worry about. Just don't forget to plug the vacuum reference line back in like I did. It's a bit of an act to do the injectors in the vehicle, there are a couple of bolts at the back of the intake down low holding the rail/lines/regulator down that suck to get to. Also, be super careful with the injector clips. They like to snap the tabs off of the rail.