2.Once you clean the air filter, oil bath what kind of oil should I replace it with and how much should I add? just dip the filter in the oil and re-install?
use the same oil that you pour in the engine and fill it to the oil level mark on the filter. if you have a maintenance manual its all spelled out in there(the GMC manuals do)
3.I have to replace the flange coming off the motor that the top radiator hose goes to on the radiator. Once I flush out the radiator and replace that flange. Fill back up the system. Do I then run the motor a bit then just make sure the system is full to the top? Anything special I have to do so it is working properly?
look for a pet cock on the driver side of the engine down low and to the rear of the block. i would start by opening that and see what comes out. if nothing comes out i would then concentrate on getting that to flow water out. its for flushing the block since its the lowest and furtherest from the rad. lots of stuff gathers throughout the years there. every engine i got, nothing would flow from there and will have an effect over what your cooling system can do if its not flowing freely.
My Grandfather was pretty much my father growing up and I want to do the right thing to keep his truck alive and running. It is priceless to me with sentimental value and I love driving it... So much Fun. I am also going to grease all the fittings and some other essentials. any other suggestions of what I should do feel free to fill me in.
here's what i do, first i make it stop. go over your brake system. for the most part ive replaced all of my trucks systems as a system not as a componet. its no good if you cant get it to stop when you have to stop in a hurry. you have huck brakes which your book will tell you all about them or should. next, i make it steer. it's no good if you turn the wheel and all kind of things happen except it doesnt turn.

then i work on getting it to go. you've come to the right place for help but your biggest help is your manual. and the best place for parts that i found is napa.