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smaller bore doesn't necessary mean more iron, the 350 has non siamesed cylinder walls, whereas the 400 has siamesed ones in the center.
As for the 4 bolt being weaker, yes that's because the outer bolt is drilled in an already thin section of the main webbing. A splayed 4 bolt from a 2 bolt would be the best option.
I see the term "splayed 4 bolt from a 2 bolt" advertised, but don't fully under stand it, can any one give a more indepth descriptions?
The outer bolts are at an angle (usually 10-12deg. depending on brand) and therefore they bite into a thicker portion of the webbing (not as close to the cylinder bore) That's what makes this stronger.
Here at GM Racing, we splay our Sportsman blocks at 20 deg and our racing blocks at 17 deg. GM Racing does not use production castings. We tooled up our own block to meet our needs.
One of the biggest draw backs to using an old 400 block is that they had a tendency to have core shift. I would recommend sonic testing the block before you invested any money into it.