Cdan has a few parts in his HG kit that the standard kit "forgot." I'd also read up on different things to do "while you're in there" (and Cdan can make some recommendations, something Wheeler can't do).
There's lots of things you could consider. Decking/shaving the head to gain some compression, boring out the cylinders (Toyota sells a +1-3 mm kit for that), etc. DON'T dip the block, there's an unobtanium bushing in it. Possibly replace the timing chain slippers as they tend to wear and the earlier 80's used a thinner/lighter setup that didn't last as long.
Robbie (Powderpig) basically rebuilds 1FZ's for a living, he's a great resource (or so I hear).
If you do bore out the cylinders and deck the head you'll end up with a 4.6 liter and a quite nice bump in HP. Down side is depending on how big you go you will knock off that many rebuilds (not that it seems people are typically needing to bore the cylinders anyway when they rebuild).
Have you dug around on the 80's forum for this? There's been some recent threads on it.