Chris,
I did this conversion on my YZ-2 when we went indoors at MB and found it a lot better on the high grip carpet.
Everything you need is in the conversion kit as you re-use some of the gears etc from the original gear box.
Is it going to be better on high grip astro, probably, is it going to be better at Batley is still undecided as the astro there I wouldn't consider high grip, so will probably try both 3 and 4 gear.
In terms of longer rear arms i use the S4 arms (#Z4-008RS4) but you will also need (2x) #Z2-010RB2 - Rear Universal Bone (62.0mm) to ensure the drive shafts don't fall out.
Also I would run a gear diff over a ball diff if its dry but its personal preference
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