Paul,

I had my engine rebuilt by a professional and watched him test it in his shop. Craig's answer pretty well covered the ground, but I have a couple of comments:
1. You shouldn't have to move it outside. Just leave the garage door open.
2. You don't need to gravity feed from a gas can. Just set it on the floor next to the engine and run a hose from the fuel pump into the can. The fuel pump will pull a reasonable lift.
3. You don't need full instrumentation. If you have had the engine for a while you can pretty well tell the speed by ear. But be sure to have an oil pressure gauge, you will need to adjust the pressure. If you have some automotive tools like a tach and volt meter it can't hurt though.
4. I recommend that you upgrade to electronic ignition while you are at it. Intigo Electronics kit is easy to install.

John