You could make 500 hp out of that thing easy. I suggest that you get pistons that use 350 rods. They're longer and more widely available. Just find a set of 882, 041, or 441 heads. Then hog the exhaust out for 1.6 valves but stay with 1.94 intakes. That 264 cam would work well but I'd go a little bigger. Comp should end up around 10-1. This way you can run pump gas. Make sure you port the heads and mirror polish the combustion chambers. Where are you located at? Maybe I could make a trip there (if it's in SoCal) and teach you how to port heads. I'm always happy to help people out. E-mail me if you have any other Q's.