360 rebuild, some questions/infos

I'm not sure if you can mill the block that far. (I forget these things because there on paper somewhere.) But I do like mopers idea.
The Fed-Mougal pistons are a good deal. KB also has a set @ around 200 and less bucks. I like the Fed-mog's for the coated piston skirts.
A basic rebuild with ethier piston would be a great start.
The new piston is taller for increased compresion and without milling the engine block or head. This is good not to do if you can avoid it. It makes bolting on parts easier, later.
From there it is just a cam selection and carb. Preped stock heads will do well.