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I think you answered your own question when you said that you'd like to keep it relatively stock. Generally, a C3 is worth more with its original engine.
Keep the original and buy a GM targetmaster (or whatever it's called these days) 350. You will come out ahead money wise of building the original. Then if a rod comes through the side during a 7 grand 2-3 power-shift then you didn't destroy the original block.
i would like to keep it relatively stock.. this is a daily driver.
cost is a concideration.
where to resource a replacement, if that is the best option?
ideas??
Either DIY or take it to a reputable mechanic, just fix what needs work...engines rarely need a full "rebuild". Sounds like you might just need some gaskets and perhaps valve guide seals.