with a .040 gasket you will have a quench area of about .065" this is on the high side of normal, i personally have always built my engines with a quench area of .038-.045"
with a .020" gasket you are sitting at 10.26:1 compression and my guess is that you are using a set of 4416 305 HO heads. this compression will certainly be pusing the limits of what you will be able to do on pump gas, if not be just beyond it. the problem is that the heads you have picked wont rev that 350 up past 5000rpm on a good day so therefor going with a cam with enough overlap to bleed off some of the cylinder pressure is out of the question as you would need a cam that would run the engine upwards of 6000 or so rpm, and you just wont flow enough air through those heads for that. the next thing to look at is LSA because a higher LSA can help to bleed off some of the cylinder pressure, but you would need a cam with upwards of 114+LSA to bleed off enough pressure and when you go looking at cams with a LSA of 114 they dont tend to be very performance minded (more on the stock side)
i would say that your best bet would be one of these options, run the .040 gasket which will put you at 9.8:1, have more of a relief (about an additonal 6cc per piston) machined into the dish of the piston (w/.020 gasket), have the combustion chambers cleaned up for about another 6cc per chamber (w/.020 gasket), buy a new piston with more relief, or buy a better set of heads with a 64cc chamber.
i would personally recomend buying a new set of heads, as i think you will end up disapointed with heads you have if you are trying to build a mild performance motor. the cheapest option would be to use the .040 gasket but you will still be at about 9.8:1 compression and you still might not be able to use a cam with enough overlap to bleed off the cylinder pressure you will need in order to run pump gas.