Hook the ground to the block since the highest amp draw on the system is the starter, and that is mounted to the block. If not, you could fry the braided ground wires since they aren't meant to handle the amperage draw.
As for fluids, I go with the high mileage oils. Nothing too fancy, usually Quaker State or Pennzoil 5W-30 synthetic blend. Sometimes Castrol if it's on sale at Walmart. I'm a nut on oil changes so I don't have to go the exotic route. As soon as it starts turning brown, I change it.
The antifreeze is the normal green stuff. I've heard some bad things about GM's Dexcool(orange). I went with Prestone since I had a new radiator and flushed the engine before the install.
'93 Chevy 1500 4X4 ECLB with a '99 Silverado LQ4 6.0 and '99 Escalade 4L60E. SOLD IT!!
New toy: 2001 2500 HD 4X4 Extended Cab Long Bed
John