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It depends on who's doing the work. It's become a buzzword really, but the higher you go in stages, the more is done to the heads. More port work, bigger valves, etc. You need to match the head to your performance desires. A heads/cam/headers 346 for instance won't like a totally hogged out port for instance. It will be very lazy but put up good high rpm #'s. Not much torque under the curve though. A smaller, higher velocity port however, will make excellent torque and have better all around performance for a 346, so choose wisely.
Stg 1 = a simple porting job with stock sized valves.
Stg 2 = more porting + larger dia. valves
Stg 3 - more heavily ported, even larger valves, and usually optimized for a larger dia. cyl. bore.
Anything with a .5 is just marketing hype that for comparison sake can be rounded off to it's base number....but this nomenclature does vary by manufacturer.