Beau, welcome to the site. This section is for introductions, so you wont get as many answers as you want here. It seems like you have the desire to learn which is good. This forum is full of information just waiting for you. Best advice: read read read. Then, dont be afraid to post, but dont post things because you think so, post them because you know. If you dont know, dont be afraid to ask questions, its the best way to learn.
Now your car. Overheating: BIG issue. STOP RUNNING IT. The 7Ms have long heads that will easily warp. Continuing to run it will result in a blown head gasket if it hasnt already. Buy yourself a decent comression tester. You will learn the value of good tools very soon. If you pass the compression test, you can do a cooling system pressure test. If you pass both these you may be ok. Before you modify anything or drive it around, get it running properly, no leaking fluids, no check engine lights exc... Perform all routine maintenance and fix anything that may be an issue. Theres an article on here about the steps to take in doing this. Lastly resist the urge to turn up the boost without supporting fuel mods.
Regarding your plans. The 7M is a very good motor, it gets a bad rap from people not maintaining it properly. Properly cared for you shouldnt have any issues. The R154 trans you have is very robust and you shouldnt have issues with it. A 2JZ is a quality engine as well, however pending what your budget is, I would reccomend you stay with the 7M. 500-700 HP is ALOT. Given that you are 16 my guess is that you have little to no driving experience. Dont take this the wrong way, I've been driving for 6 years, and have alot of experience driving everything from box trucks to sports cars. I would be very hesitant to take a 700 HP car out on the track, let alone on the street. Not to mention once you get into the 4-500+ range things break. Often. Parts you would never think of upgrading need it and they are not cheap. Ask any of the high HP guys here, they will tell you. Get your car running, learn to drive it. Its safer, cheaper, and you learn more in a slower car.
Again, welcome to the forum, enjoy your stay here!
-Jeff