Advice on camshaft for a 318, please.

The XE268H is a bit big for a stock-head, stock-compression 318. That cam is more common in built-up 360s. The XE262 is the biggest I'd go with. In fact on my 318 with stock #302 heads, stock exhaust manifolds, Performer intake, and ThermoQuad carb, I'm about to run a Lunati Voodoo 256/262 which is smaller than the XE262.

EDIT: Forgot about your ignition stuff too. Along with a cam swap I'd also definitely go to an Electronic Ignition setup (I have a Mallory HyFire 6A box in my car, little much but I wanted a good system) and give it about 12* of initial spark advance with around 34* total at 2700 RPM or so (to get it just right you'd have to experiment and tweak it a bit at a time).

It is about as big as one should go with a stock compression 318, but mine performs well with this cam and it should in any other similarly built 318 (XE268). It is only a tad bigger than the XE262. It worked great with a stock converter and 3.21s, but works stellar (for a 318) with a 2200-2400 stall tc like my Duster now has and easily pulls hard to 5800 and runs mid to high 14s. With that said, I still agree on the XE262 being a good performance cam as well.