Look,
I am a low buck kinda' guy. So, if you want to daily drive the car, how far do you want/need to drive it? If it is going to be a weekend warrior/cruiser/nice day or because you want to...
The '85 GP should have the frame tabs to accept a 200R4 overdrive trans, or use an aftermarket crossmember for dual exhaust(I consider it a must and the price to play with the last of the real GM rear drive cars). If its going to be a daily drive with some long hauls and freeway time, find a 200R4. Thats going to require a good transmission guy to put in a good shift kit/reprogram the valve body, governor, and servo(if you can read & follow the instructions, you could probably do it yourself).
Weekend warrior, I would look for a BOP Turbo 350/400 or whatever comes with the motor you find. I daily drive my Malibu with a SBC/TH350 I don't have any issues (well, the Q-jet is sorta' cold natured on frosty mornings). I don't have a street/strip gear in it though. My BBC/4-speed El Camino gets driven ALOT, it would be more, but, I need to put the headers on and have the exhaust fixed. It has a 3.42 gear, its not bad, I mean, with the 2.73 gear it had it would do 70 MPH just off idle.
So, decide 200R4 or Turbo350 or 400. Overdrive lets you get away with a rear end gear ratio thats WAY funner. But, street cars with 3.23-3.42-3.73 gears are so quick/peppy/salty without any other changes. The 200R4 also needs the correct kick-down/throttle pressure linkage/cable brackets in use.
I am also sorta' weird, in that I dig an Olds having an Olds motor, your Poncho having a Pontiac and so on... To me you score car guy points for it. Its a tougher road, but, pretty cool. Look at the responses on this board for a guys putting a Buick 350 into Regals, nobody does that....sure the easy/cheap way out is SBC, but, almost everybody has one, been there done that.
The easiest way to do the swap is to have the surgeon out look, your car needs a heart, you need a donor car. The cool things about donor cars, they offer all the other organs too, radiator, hoses, transmission and lines, belts, pulleys, brackets....etc. etc. etc. Even motor mounts. The donor pool includes wrecks, old big gas guzzlin' grandma cars, project cars, tow in yard auction cars, storage lot auctions, and dead cars in driveways and yards, long forgotten for smaller, newer cars....look for Bonnevilles, old big body Gran Prix, Grandville, Trans Am/Firebirds. Pontiac was none to stingy with 400's, they put them in everything. I know, we all want a 455, but, I'll take a running Bonnie' with a 400/400 anyday!