318 capabilities??

ok so i have a 70 duster.. i have a stock 318 that i was gonna put in but i dont want it to be a complete slug.. i was wondering if a stock 318 with a good cam, air gap, good carb and a set of headers would run 12s with a 125-150 shot of nitrous.. or if the 318 could even handle that.. thank you the rear gear is 3.91.. un sure on the tire size..

Yes it'll handle that.
Open the ring gaps up, something like .026 top and .032 second. I would use Comp's 265DEH cam and I would highly recommend changing the rockers to a good crane or ductile adj. setup because of the high cyl. pressure associated with NOS and it'll give you adjustability with the cam.
Or you could have them grind you one of their nitrousHP cams...