cyamaha2007,
Don't worry,... you are dealing with internet trolls. they are on any website you care to mention. Ignore them. This a good thread and you are getting good advise from the rest. with that said... some advice from me, an owner of a heavily used 160k '94 K1500 shortbed Z71.
As far as being worried about my daughters welfare... I put her in a full size '99 Tahoe(same body style as yours... different dash and electrical)
These are Damn reliable trucks if treated right. I'd fix it too. I wouldn't go to the trouble of pulling the whole thing apart to replace the frame either. That's just a waste of sweat, and will cause more trouble yet.
I agree with the Z cut and fish plate. That is standard custom frame affair. You are just doing for the reason of rust instead of shortening or altering. No difference if you ask me. The rest of the is probably fine. I say this because I have noticed this is an area that holds mud and salt easily. I can see why that particular area would rust (If you have one of these trucks you will see what i mean). I have noticed that problem in my truck,and have washed there often with a power washer. That's why I don't have that trouble.
BUT...READ THIS.... while you have the bed off.... Pull the gas tank down and replace the brake line from the rubber line going from the rear end down the frame rail to under the master cylinder where the frame bends back up to the control arms. The line rusts out because of mud that collects behind the gas tank. You can't get the mud out with a power washer with the tank in place. Mine was full of **** there, and I bet money yours is too if you haven't already crossed that road.
There is a coupler behind the gas tank and at the aforementioned upward bend in the frame. So you need to bend up two pieces of line separately I wish i remembered the lengths of line so I could tell you which ones to get. Buy the coated ones Napa with the ends already flaired on. You will still have to shorten both.
While your there.... squirt some penatrant on your fuel pump hanger fittings on top the tank. You will thank your self later. Even more so.... If you have 30 odd dollars, order a new pump from GM direct and do it now while it's handy.
Not trying to talk you ear off. Just trying to save you some grief
