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Cover the fundamentals before throwing parts at it. Assuming it runs clean without missing or popping... Compression and leak down test? Valve train right if adjustable rockers? Dist curve correct? Plus/wires/dist cap and rotor all good? Cam in at the right CL? Is the carb...

I would get the cam recommendation from the cam grinder...you're going to want something to promote building cylinder pressure (not to the point of detonation) with such low static compression. Comp Cams would be my choice! Carb? Holley Avenger 770. Price is right, vac secondary and...

I agree with your logic and theory...I think it can be done with some careful spending. EXCEPT one thing - I wouldn't skip the axle deal...the $400 you might spend would be WELL worth it if you break a stocker. Imagine it breaking at 120 in the lights. Or when you're rompin on it around town...

The best part is you proved your measuring and math theory!