an 03 would make me a little nervous, an 04 not so much, and would have no problem driving a 05-07. Manual is the only way to fly if you ask me.
I wouldn't. Diesel Power has done a bunch of articles on easy ways to fix the 6.0 before it blows. ARP headstuds, DPF delete, oil cooler, and you're good. I guess you could O-ring the heads while you're doing the ARPs too, but don't have to. Ford 6.0L Power Stroke Problem Solvers - Diesel Power Magazine
No way I would spend that much for a 6.0 and KNOW that I have to do that crap..I've passed up trade offers on several lifted 6.0 crew cabs simply because I've been told by a few diesel mechanics to steer clear