Replace the head gasket for sure; the original is a metal shim type, and there are a couple of coolant holes in the head and block that get blocked off by the head gasket. Over all these years, the metal shim gasket usually corrodes out at these points and the coolant flow starts to bypass the full flow route to the back of the block and through the whole head rear-to-front. The result is degraded cooling in the rear of the head and block.
Once you do the head gasket, unless you find a NOS metal shim type, then the newer head gasket will be thicker and so the compression ratio will go down a bit. So that is another reason to shave the head.
Timing chain replacement is a must; they really stretch and retard cam timing to a point where the performance is really dogged down. No new info on Comp that I am aware of with these cams, so I'd stick with the more tried and true from Oregon or Doug Dutra.
Felpro is good unless you want to find a thinner metal shim head gasket. Pay a lot of attention to the rear seal area installation.