Can a 318 crank and rods be used in a 340?

Yes, the 318 crank will work... the forged will be stronger, but the cast is supposedly good for up to 400 HP or so.

The 318 rods are lighter than the 340 rods and will likely be weaker than the crank but again, it kinda depends on how you are using the engine.

Just sayin.... I have seen cast crank engines live on the street and track in excess of 550 HP. But not a true serious street strip. It was one or the other. Like you said, it comes down to how hard you hammer the mill. And to that extent, nothing will live long if you hound the engine.

Wouldn't aftermarket rods be better stronger lighter and under $300

Depends on the rod. But mostly, yea. A good street rod isn't to expensive. A good race rod is. The stock rod is a very good forging. If there straight and do not require work to use, I'd go for it. (The beefier 340/360 rod)

What did did you have in mind?