Where did I go wrong? Other than being a cheap ***

Set of headers and 2 1/2 max! Duel exhaust. Removing weight at your hp level is free effective horse power. Could install .020 head gaskets. Electronic ignition is fairly cheep. Are valve springs matched to cam? Or just stock springs? Good duel plane intake like performer or rpm will reduce weight and build hp. Torque converter is money well spent. Your rear gear is going to want rpm and that will be complimented by a higher stall. 3200 would fit the bill nicely.