Cool deal..
But don't get in over your head.. as it sounds like you are learning along with the students..
It be nice if you could contact a local machine shop with a flow bench.. that would show the class, gow they test for flow in the ports, and what is normally done to make it better, as a little field trip..
I'd keep the trans mods and rear gear mods off the table until it was up and running..
I'd also rebuild the carb.. and tune it with them.. and then if the funds are there, install efi and they can see/learn the differences..
You might get holley/ect to donate a unit for the cause.. Many performance aftermarket companies are more than willing to help with school autoclass projects.. it might be worth a few hours of emails..
good luck

 

I would've really, really enjoyed a class like this in high school, but I was already off doing computer stuff.

I agree that it'd be great to do incremental changes so they can see how the car reacts to each change. E.g., do the major engine rebuild first, then work on exhaust, then induction, then rear end, then tranny. Get permission from the school to do a small auto-cross course in the parking lot (probably a permission slip or two there).