I am building up a Dart 345 (as soon as Dart ships the block, been waiting for 3 months for it). I had a 306 that I was running with 8-9# boost and turned the dyno 422RWHP at 466ftlb at 5K RPM. I was running the HCI that is in my sig. While I am at it to build a strong motor, it was almost the same price to build up the 345. At 422RWHP, that would put my crank HP near 500HP. I run the Mustang on open tracks for 20 min sessions. I didn't want to worry about blowing a block, so I decided to build it once and save $$$ in the long run.
What I would do, is leave the engine as it is and get the turbo. You will love the low end torque for a street car. Get used to tuning it with a fairly stock engine. This way if you hurt the motor, you are not hurting you wallet as bad.
1994 Mustang GT Chrome Yellow, Griggs GR-40, Tweecer RT, T4M0 with J4J1 Cal, 42# injectors, Pro-M Bullet, LC-1 w/XD-1, Dart Sportsman 8.2", 345CI, Edelbrock 6037, Cobra intake, Crane 2031, Steeda 1.7 Shaft RR's, Cartech Outlaw turbo, 422RWHP 466 FTLB at 8-9# boost on old and hurt 306. SAAC NW track days at PIR.
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