First thing is to do a VIN check and see what's been done to the truck. It is almost a given that the injectors either have or will go bad. They were warranted to 200K or some number of years which I can't rememeber but know the 2001's no longer qualify. You can easily ck your injectors with either EFI live or a TECH 2.
As far as building a drag truck, how far do you want to go? I currently own two of these WT single cab model bare bones trucks. The 02 GMC is about ready for the track with a full built motor and a duraflite transmission. That a full Billet Dodge tranny with a duramax adaptor and stand alone controller. They have proven to hold up much better than an Allison under big power.
If you want to start with a stock motor and just add to it, you need first to build your transmission. Suncoast or ATS both make good ones. You'll need a good after market TC as well. I'd contact Mike L at Inglewood Transmissions, he can advise you. I run Obviously you need a good intake and exhaust. There are several good tuners, but if you want to get serious you need to invest and learn EFI Live.
Traction is going to be a mayor issue with a 2 wheel drive, I've never had one so other than the obvious you need input from guys who race them.
You will need a good lift pump as you get toward the higher hp, many good choices there. Logging your engine with efi live or a tech 2 to check rail pressure will tell the tail there. Anything below about 22,000 psi is too low for performance IMO. You will need to get more air, an after market turbo will help you make more power. I'm a big fan of twins, but there are single chargers that will work well too.
To go farther than that you'll need to start beefing up the engine. Rods, aftermarket pistons, head studs, reworked heads, cam, keyed crank, about endless here, Steve at TTS or Guy at SoCal diesel would be great help. This is also where you add twin CP's and big injectors, I did twin CP's and injectors on a stock LB7 and bent all 8 rods.
There is a limit to what an Allison will take, built or not. It appears to be in the 750 hp range. You will have to refreshen it annually if it lives a full year. Obviously if you get it under 11.5 you will need a roll bar as well. Good luck.