I'd replace the master cylinder and do a full brakes once over. Stopping to me is more important than how fast it will go - get out of trouble faster then you get into it. Likely OEM stuff on the truck.
Sounds like the internals on the speedo gauge are shot.
Flasher 'box' is located in the engine compartment to the left of the MC. Check all of the wiring/bulbs first - then the directional switch - then the box. I got a new directional switch (newer/different MV) and new signal box for about $100.
The t-case allows for 2wd low.
Snuffy
It's your call on the parade.
Cummins - Turning fuel into noise since 1930.