Why would you want to reduce the height of the vertical stabilizer by the amount of the added counter balance? I added 1.5 inches to the length of my rudder, and 1/2 inch counterbalance on top, and it flies great. I dont see the point of the extra work, unless it's purely cosmetic.

As far as the other mods go, shorten the wings by one bay on each side (if your building from the kit, I would also consider sheeting the wing leading edges back to the spar) and lengthen the elevators by an inch or so. Some guys rework the canopy by cutting it down to a more form fitting shape, but I personally like it the way it is. Get rid of the stock tailwheel and install a Sullivan. This is just a start, and you are pretty much limited by your own imagination.