Are these GT40 heads or GT40P heads?
I've never used the reducers. That being said, it's the proper way to do it. Back when I started this, they either didn't make them, or no one had ever heard of them. I have always bolted heads right on with the standard ARP 7/16" stud or bolt kit and never had a problem.
Stock cam will work. It will make better power with a different cam. It's all a matter of how much time you want to spend vs cost/reward. Cams are cheap, but it's double the work to change the cam.
Stock rockers will work, but most people elect to go with rollers as it's not a huge cost or time consumer. Pushrods should be ok, but I would never send an engine without doing a pushrod geometry.
Based on what you are saying, I would save up the money for the rockers and possibly a cam before you do the swap. The incidental costs (like holy
have you seen what a gallon of antifreeze goes for these days) of tearing down the engine twice exceeds the value of those parts.
Kurt