I think I am going to go with the 360, this car is definately not a daily driver, and I think that in the end, with a cam and heads freshened up, this will be more than enough power for this light of a car.
With that being said, just so happens I am driving close to San Jose tomorrow, but can't really afford the parts just yet, unless of course I get a buyer for the 318! PM with a price and so forth, and maybe we can work something out in the near future. The car is not going to be ready for the motor until the spring anyways.
Thanks for everyone's response, as always, informative and entertaining!