I converted Candaian to American, and found that you have around $2500 American to spend. I found a pretty good stroker rotating assembly out of jegs for $1,050. http://www.jegs.com/cgi-bin/ncommerc...90&prmenbr=361
There are two paths you can take from here. Either get iron unported iron heads now, and start building, or save up a little more and get aluminum CNC ported AFR heads. The AFR heads will make around 50 more hp over a set of iron eagles/sportsmans/lightnings out of the box assuming you have the same setup, and they are aluminum which will dissapate heat faster and allow you to run more compression and stay on pump gas. As far as iron heads go, I would recommend dart iron eagles or Vortecs. The Vortecs are good because they are around $200 cheaper, and will perform as well as the iron eagles overall. The down side to the Vortecs is that it really isnt worth porting them in the future, and they have thin castings which tend to crack when they are overheated. Either way, I would recommend something like the the Comp XE274H (230 236 @.050 .490 .490 lift 1800-6000 powerband) cam if the car is a daily driver. I am not sure if you need to buy an intake manifold and carbeurator with the money that you have, but if you do, I think vortecs are the only way to go and stay anywhere close to your budjet.
here is a breakdown of the parts and costs
Vortec heads (with spring upgrade) $650
rotating assembly $1050
cam and lifters $160
intake manifold kit (performer RPM) $180
carbeurator holley 650 DP with fuel line $400
This all comes up to $2440
I am not sure how much machine work would be where you live, but I am sure it would put you a little over. This is the cheapest way out that I could think of, and still make some really good power.
If you wanted different heads, here are the prices for the other heads, and estimated hp and torque levels with the cam and intake listed above.
Dart iron eagle 200's $1000 out of Summit ~425 hp 430 tq
Vortec heads $650 out of Scoggin Dickey ~420 hp 460 tq
AFR 195cc heads $1300 from AFR ~ 470 hp 490 tq