Brakes or Cylinder heads?

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If the brakes are in good shape (and as noted above properly done), there is nothing wrong with the stock drums unless you're driving hard in traffic... They do not feel like a modern car, but that's cuz it's not a modern car...lol. It was safe for highway use when new. It's safe now.
I would do the front end, upgrade to polyurethane bushings and maybe add a sway bar if it doesn't have one. Then repair the exterior. Holes in the finish (that means paint - not necessarily the metal's gone) will rust a lot faster than the worn seat will wear. More power can wait. More brakes can wait for more power. Interior can wait for more cash.
 
..stock brakes and suspension in good repair will work O.K. for normal slow speed driving,
but i don't think either are good enough if you have to do something difficult in an emergency.
Torsion bars,tires,shocks and front disc brakes are not overly costly.
 
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