The original thought was to take a relatively rust free 1st generation S10 without an engine and transmission, and put in the left-over parts from a V8 swap to make it into an inexpensive, reliable driver.
A compression test proved that the 2.8L would need a rebuild but it would be reasonable to upgrade to the 3.4L. As of now it appears that the most economical course would be to source a 3.4L short block, move all the 2.8L parts over to it and use a Weber carb.
If you upgrade to the entire 3.4L system, you face dealing with modifying the computer to work in this application and an upgrade to the fuel pump. While the engine connections are fairly easy to adopt, there is no information (i.e. a wiring diagram) to define the necessary computer harness modifications. (If you go to the next level and get a 4.3L then a replacement transmission would also be required.)