I think you should familiarize yourself with everything. Comin on here and saying stuff like "max hp" shows that you really don't know a lot of what you're talking about.....and I'm not trying to insult you. We all had to start somewhere. I say follow rumblefish's advice FIRST. Buy those two books he recommended. Learn the terminology. That way, when somebody recommends something, or tries to sell you something, you'll know if they're a shitblower or not and stand a better chance of not gettin ripped off. I agree with raising compression and the head swap is probably the cheapest way. 302 LA heads or the Magnum heads are both good choices. The LA (Lightweight A engine) heads have the shaft mounted rockers, all on a common shaft, while the Magnum heads have rockers mounted independently of each other with bolts. There are advantaves and disadvantages of each. Read about them, ask questions and decide which you like best. I like the LA shaft mounted rockers best, BUT I happen to be building an LA short block 318 with Magnum heads. Everything just fell together and it was the cheapest thing. Right now, budget is critical for me. There are lots of knowledgeable people here that are more than willing to share that knowledge. But like I said, before you spend big money, spend some small money on books. Rumblefish gave you the best advice so far. I'd use it.