360 heads on a 318, I know it has been beat to death...

dude first thing you need to do is find a new head shop. $700 for machine work is criminal. I did a set of stock 360s with full porting, new springs, new 2.02 intake 1.6 exhaust swirlport valves, and shaving .030 off for $510 out the door.

that cam is alittle weird of a choice for a mild(ish) street motor. A flat tappet is not a common street cam but other than that below 500 lift and under 290 duration should be ok. the cam will be alittle restricted in regards to your engine's flow ability but once you dial it in it will be alrigh (I am a huge supporter of dyno tuning btw).

Oh and depending on the year the heads came from you will need hardened seats (I think its '78 and up they came hardened).