Regarding two Long Islanders in the finals I knew it happened a few times during what many would consider the heyday of LI wrestling (well the heyday + 2-5 college years). So we have:
1985: Chris Edmund (Tennessee/Freeport) wins (defeating an upstate NY guy from LI's Hofstra) Pete Capone; Wayne Catan (Syracuse/Bellport) loses
1986: Al Palacio (Long Beach/North Carolina), Pete Yozzo (Lehigh/Sayville), and Wayne Catan all lose
Yozzo won in 1987.