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If you plan on this being a daily driver I would recomend going with a set of mildly worked 416 heads, a performer manifold with EGR, and a about a 256 cam. Small diameter long tube headers and dual 2" exhaust. Your basic HEI igntion and a Holley 600 carb with vac. secondaries (this carb is as common as the cold and can be bought and rebuilt for less than $100). You could hit close to the 300 mark and it would be very drivable.
I did a quick DD run of a combo like this and ended up with 320hp and 350 tq, which I think is a bit optimistic but shows you should hit at least 300 hp.
And yes on an engine like this I would keep EGR and vacuum advance- there is no reason not to.
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