How would I know how much of a longer rod I can fit in the sleeve before it becomes too much.
Random question: what is meant by taping the blower housing
What engine do you have?
The way to check how much of a longer rod you can use is by measuring. Take the head off, put the piston at top dead center, lay a straight edge across the cylinder deck, and use feeler gauges to see how far below the deck the piston sits. That measurement plus the head gasket thickness determines the piston the head clearance. 0.030" is a clearance to shoot for. Some do less, but that isn't advisable (especially for beginners). Also need to consider piston to valve clearance. Long rod, thin gasket, hot camshaft, ratio rockers, milled cylinder head,... all decrease piston to valve clearance. I try to not run any less than 0.065" piston to valve clearance. Google how to measure piston to valve clearance. I use the clay method.
Also consider the compression ratio vs the octane fuel you want to use. Dynamic CR is what is important here. Need to consider camshaft event timing here.
Lots of things to consider when putting an engine together. My first build thread was like 80 pages cause I had to learn all of this.
Taping the blower housing prevents new air from entering the housing. It is easier (less drag) on the flywheel to keep the same air spinning in the housing than to keep cycling new air in and out. It is a quick and dirty alternative to cutting the fins off of the flywheel fan. That is essentially eliminating the cooling system. Great for methanol builds that run cold, not great for gasoline builds that might overheat.
I've never tried it, so I don't know the technique. I assume that you just cover the holes in the housing with tape. Simple. Probably best to test with a cylinder head temperature gauge. I wouldn't bother with it unless racing competitively in a class that allows it. Even then, an aftermarket flywheel with smaller (or less, or no) fins would probably be better. Billet flywheels don't grenade.