Wow, lots of minconstrued information in there!
I'll make a quick run through, even though myself and Mangus580 have gone over this several times as he stated.
You'll need:
700R4
low stall, diesel torque converter
tv cable bracket
tc cable
flexplate
700R4 to NP208 tall adapter (around 11" tall)
27 spline NP208
your choice of lockup torque converter wiring
dipstick
Once you have everything gathered up and stuck in the truck, you'll see that the 700R4 combo and TH400 combo are within a 1/2" of each other. Definitely does NOT require any driveshaft changes. You will be time and money ahead to get a whole transfer case that is 27 spline rather than disassembling the 32 spline case just to swap the inputs. A new input is about 85 bucks, I got another transfer case for 100 bucks. Plus, a 32 spline output for a 700R4 is VERY pricey, last I saw it was around 400 bucks from Advance Adapters and also requires complete disassembly of the transmission. The crossmber and mounts will bolt back into the original holes.
Now, as for using a 4L80E, sure....BUT, you'll probably spend more buying a transmission and in electronics for it than you originally payed for your truck. I'd rather spend a few hundred bucks in upgraded 700R4 parts than a 4L80E anyday. With 155 HP and 240 lb/ft or TQ, a 6.2 will have a hard time tearing a built 700R4 apart. I ran my 700R4 for about 10,000 trouble free miles with 39s on the truck. The only reason I sold it was to swap in a Cummins 6BT