Stock 318 bolt on performance modifications

Since you have the engine out, or will I would replace the timing chain and as many 40 year old gaskets and seals as possible. Beyond that, let your budget be your guide. If it were me, and I had about $1000 to play with I'd do the following...

Edelbrock Performer intake
Edelbrock 1406 or Holley 1850 carb
Comp XE260 "K kit" (comes with springs and timing set)
Fel-Pro complete gasket set
New freeze plugs
Engine Paint

Dual 2 1/4 exhaust from manifolds or basic 1 5/8 headers(optional). Headers can be added later.

The intake and possibly the carb can easily be had used to save some cash. Should be a great improvement over stock, get good mileage, and have great street manners.

That is some good advice. I went ahead and replaced front and rear main seals. I also replaced the timing chain and I'm glad I did. The plastic sprocket had all kinds of cracks and was starting to loose teeth and the chain was real loose. I also had a few freeze plugs that were seeping so those will get replaced along with a fresh paint job. Performance mods are going to have to wait for now.

The engine had one spark plug extender on the number 7 cylinder. Not sure what that is about, maybe there was a problem fowling that plug. I'm going to remove it and re install plug with out it.

Bottom end should be good for the foreseeable future now. If I change intake or need a valve job that work can easily be done with the engine in the car later.

Thanks for all the tips and suggestions, I'm banking them for letter upgrades. :D