I love the small block in an A body. I do have a 400 in a Duster. Power wise, it is good, but I'm not so fond of the handling. It does still have iron heads, the rest is aluminum w/headers.
I would look at a 360 because the 340 is pricey just to obtain. It (360) has a longer stroke for torque and will make very close to the same HP a few hundred RPM's less.
A "RPM" top with a solid built flat top piston and 1-3/4 headers (or TTI's) are an excellent platform.
An overdrive trans is excellent for extra mileage. 4.10's (x .69 OD ratio MoPar ratio) = 2.829 final drive.
I (or we) could suggest a cam later when we know more.
As far as street racing goes, go for it with care. Back road and industrial parks at night. Far far away from the world. That's all I do is street race. There are no tracks close. All those above who trash it have cause but no right to talk down on it or to you in such a manor. I'm sure I'll catch heat for it.
Just use your head.