360 - Rebuild - Information & Opinions Needed

Just picked up a 79 Lil Red Express (I know, I know, not an a-body :eek:) and am planning on taking the engine out this winter and either rebuilding as stock, or maybe hopping it up a bit. The whole reason the engine's coming out is because she's tired and at least needs a freshening up.

The engine is the E58 spec 360, all stock minus a new Edelbrock carb.

If I plan on hopping it up my goal is to just have a little more kick from the engine for more fun. Nothing for racing, nothing fancy, just more of a 'budget' build I guess.

So, keep in mind, I'm a total newbie when it comes to cam specs and what works best with what, so all suggestions and information are more than welcome!

I was thinking of putting in a better cam, getting the deck height milled down for a little more compression, cleaning up the heads, better intake and installing headers.

So, my questions are:

1) What amount is safe to mill off the deck?
2) Will there be valve interference issues with a lower deck height w/stock heads & cam?
3) What's a good cam to upgrade to? From what I've read the stock cam is a '68 340 cam.
4) Best intake choice on a budget?
5) Are all these mods not worth it if I don't get some head work done?

Thanks in advance for all advice and input. If I'm totally out to lunch let me know! I enjoy the learning experience.