Raffa, looks and sounds GREAT! Sorry I'm late to this discussion, but everything so far is all good advise.
I'm no expert, but I've been where your at. 7 years ago I took my street Camaro to the track, it ran 2.+ 60' , 12.+ second ET @ 131 MPH, with similar power to yours and weighing in at 3710 lbs. It was a sad day and flat out scary spinning the tires most of the way.
I'm not going to try and tell you what to do, but since both our cars have many things in common some of what I did should translate to your car.
Your "M5" 29 x 10.5 slicks with 11 to 12psi should work fine, and will work best on a 10" to 12" wide wheel.
Mine is also a 5 speed/clutch car and BTW, CONGRATS to YOU for drag racing a stick shift. You may not realize it is vary rare to find a 3 pedal car (excluding Pro and SS) at a drag strip here running less than 11 sec.
Like you, I started with muti leafs and Slide-a-links (same as CalTracs) had a street clutch and about 800 HP.
After my first outing, like you I went home and started changing things, the guys here were a big help on what to do. I moved the batt, removed the sway bar, removed frt bumper, removed exhaust.... same stuff you are doing. Added 90-10 adjustable F shocks, a roll cage and went back to the track. Went 10.70 @ 135 with a 26 X 10 M/T "M5" slicks on a 10" wheel, NOTE... at a good track!
Your track/air strip will be a chalenge, I still had problems if the track was not well prepared.
The next thing I did was a larger tire (11" x 28) this helped some, but at poorly prept tracks it would still over power the tires... Here is a vid from then
http://www.youtube.com/watch?v=Uk_pWioiI3s
That vid is a pretty good example of a burnout, I was using 3rd gear then.
At this point I started breaking things, (60's @ 1.50s). If the tires hooked hard (dead hook) or sometimes wheel hop, I'd break the rear gear (2 times) and or bent both leaf springs and Slide-a-link bars.
With bent leaf springs I changed to a Ladder bar suspension and double adjustable coil over shocks, big weight reduction, was near 100 lbs lighter.Also went with lighter F drag race brakes saved 45 lbs. Now my car was around 3450 lbs, still had a street type hard hitting clutch, so I was stuck running bottom 10 second passes @ 138 to 140 mph.
Note...the ladder bars are lighter, but you can go just as fast with CalTracks with his split monos. Not just any mono, get them from Calvert Racing!
It was at this time when I got my adjustable clutch, 30 lbs lighter, and 3+ tenths quicker.
To understand an adjustable clutch read this thread
http://www.chevelles.com/forums/showthread.php?t=232952
There are pics of my clutch on page 3 and on pg 4 you will see pics of some of my broken parts.
Shortly after the adj clutch I went with a clutchless shifted 5 speed, picked up another .15 et.
I have made a few other changes since the above including mini tubs and 12 X 29 slicks on 12" wheels.
My car now weighs 3350 and will run bottom 9's at just under 150 on a safe tune all day any day. It still has full interior, a back seat, carpet, ect and I drive it a little on the street.
9.10 vid
http://www.youtube.com/watch?v=9tK2vx1o0fw
Best 60' VID in my sig.
Hope this helps.
...Bill.