At a minimum, I'd go with a full 16" barrel, like the one giffman is offering in the group buy - a chrome lined, midlength, 16" barrel with a 1/7 twist. 18", in the SPR profile or 20" in the SAM-R profile would likely be better for accuracy. I would not go with a 14.5" barrel unless you knew that all of your shooting would be relatively short range. Since you load 69gr & 77gr SMKs, I'd go with the SPR profile barrel, maybe a White Oak in 1/7. I have that setup and regularly shoot 1/2" groups at 100yds and 1.5" at 200 yds. The 18" barrel isn't much more than a carbine and I'd guess you won't regret it. If not that, I'd go with a 16" barrel if you are worried about function, but I have a 14.5" setup that runs like a champ with 77gr reloads, so maybe you could go with that.
IMO 1/8 = 1/7. There isn't much difference unless you are trying to shoot the .mil tracers, which is the real reason that the 1/7 is needed, to stabalize the longer 1/7 tracer rounds.