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The transmission conversion is straight forward with all factory parts. Rene Svestal, who frequently posts on the brickboard has a web site on it.
No, the drive shaft is not externally balanced. I have never heard of that with a drive shaft. Some engines, like the small block Chevy 400, are externally balanced, because the engine does not have room for internal balancing. Not so with your B230FT.
The AW71 equipped turbo 700s have a 3.73 ration rear end, and the M46 equipped turbo 700s have a 3.54 ratio.
I have converted two 700 series turbo cars from AW71 to M46. The job is time consuming, but simple. There is nothing to build, all you do is remove and replace. The greatest challenge to many people who wish to do this will be the removal of the AW71 overdrive relay and base, and the installation of the M46 overdrive relay and base, and the connection of the fifth gear light in the instrument cluster.
M46 equipped turbo 700s are scarce, especially in the later model years. 1991 was the last model year to have theM46 as an option.
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