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As far as working over your 360 is concerned, yes the heads would be a good place to start - magnums are nice, but keep in mind that they limit your intake options should you be planning to do this with swapmeet/ebay parts, and the factory intake you show in your pictures certainly won't work...

Nothing wrong with a mid/late 70s 360 - matter of fact with some basic head work and other mods it's probably cheaper/easier to build power from it than a 340 due to the lack of the "halo" effect that still surrounds 340s and their parts.

Used to be one or two of the '71 cars that came frome from Crestview Chrysler in Regina Sk living in Southey Sk. I believe they may have moved on to new owners now. http://www3.sympatico.ca/f.bevil/71Swinger340.html