Engine Power

Great advice given above for the engine. Also to note the 904 trans. will be just fine for what your doing. In fact it is the best choice because it won't rob excesive power from that little teen. Just do a quality rebuild on it and install a Trans-go tf-2 kit and a trans cooler and it'll be good to go. If you want a little better takeoff install a looser converter. Something in the range of 2000-2500 (cam size dependant) will give it a nice kick in the butt on takeoff.

One thing you might want to check out also is what rearend it has. Some 318 cars had the dinky little 7-1/4. It won't last long at all with a 325 plus hp engine. Find an 8-1/4 for it if it has the 7-1/4.