Grip
Don't underestimate the effect on your grip of using dumbbells. This has been my biggest hurdle to improving my deadlifts. Any time that I can use dumbbells instead of carrying stuff on my shoulders, I do it. Of course, YMMV.
But barbells for lunges and dumbbells for step-ups --- or the other way around --- they would both work. You'll have plenty of time as you work your way through the book to try them both ways.
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