As for traction I would actually think you would be better off with the 3.8 , I would guess it lays less then a 350, my best bet to tell you with the traction is a good set of traction bars, lighten the front up as much as possible, and run a full tank of gas to keep the truck nice and heavy in the rear. Weight transfer is key to traction, as for the transfer of the motor, if the tranny in your s-10 is a 700r4 you can get a conversion plate to hook it up to the 3.8 liter, as for the motor itself, it should fit in the s-10 just fine, just gotta worry about motor mounts and wiring, other then that it should be a fairly simple swap.