360 rebuild, some questions/infos

Hi,

so I have my old 1978 360 on the stand in the garage now, and don't exactly know what to do with it !!!

I removed the head, and check some things ... as well as a novice can do. Now I wonder if I should give it to a rebuilder and spend the 2500$ or more it will cost me for a warm over engine.
Or is there something that I could do by myself without changing everything, to give him life. I mean if I rebuild it myself (would be my first try ever ... good idea, not so sure), the block would go to the machine shop to be check, cleaned, bore over if necessary, have the crank and cam alignement check and bearings changes, maybe a block and head shave also.

Maybe I am very wrong to think that I can do any thing close to a performer with stock piston and head, but how wrong am I.
Can an engine like that produce 350hp, with stock piston and head (milled?), an Holley street dominator intake, an Holley 1850 600cfm secondary vacuum carb, and probably a cam change. Would use a set header as well.

What I am looking for is a fun engine, that can burn tire on a open 8.25" with tall gear (for now at least). Just want to have some fun with the car before investing too much money in it.

Rigth now the piston is down in the hole by 0.100" ... here is a pic of the piston (flat ? I guess not!)
piston.jpg

Thanks and let me know what you think