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Horsepower

Well ported heads,mild camshaft,headers,dual exhaust,performer rpm intake,and carb of your choice.

Easy to over cam such a small engine. Spec wise something like an Xtreme energy 268 or similar would be my thoughts. No alum heads (?) as the larger intake valves may not clear the bore(someone smarter than me can chime in). If it only makes 375hp would you really be disappointed? A 750 vacuum secondary Holley or Thermoquad would work.

A good ignition curve as well.
 
Naas. (Nitrous). I have sprayed countless stock big blocks with up to a 250 shot with no issues. Back off the timing and good fuel.
I currently have a 2 stage plate system on one car and 2 fogger kits on another car.
 
Not "carb of your choice" at least a 750 or maybe bigger. How are you gonna make 400 horse with a 268 cam in a small engine? Your not!

A 600 cfm won't do it. Cheapskates will try a stock 500 cfm AFB, and then bitch when it won't go low 10's in the 1/4. LOL

You are slumming with a 361, beatin your head against a wall really. You will need some compression, where do you get 10.5:1 pistons for a 361? You don't.
 
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Normal cubic rules apply. In theory if you built a 425hp 383, but reduced it to 361, you're at 400 . It's all in the cylinder heads. And making the valves fit.
 
To clarify, you're seeking more than 1 horsepower per cubic inch.

As others have said, one recipe for more power is more airflow, through the carb, intake, heads and exhaust. But without compression, you're being held back. And without increasing the displacement with a stroked crank, again your limited.

Possibly the easiest recipe and most cost effective way to get there is post #4, N.O.S nitrous oxide. You may still need the long-duration cam, and better airflow parts (carburetor, ported heads, headers) and you can get there.

But the nitrous alone may do it. My opinion is the mains, crank and connecting rods can withstand a 100HP kit.
 
How long do you want it to live and how drivable do you need it to be? 400 hp isn't that hard from a 361, but verifying that the short block is sound with good bearings and decent ring seal would be a priority. If going the nitrous route, those factory pistons are going to need that dialed-back timing and a good fuel system to support it. Otherwise, it's headwork, bigger cam(and poorer idle), big 4 barrel and headers/free flowing exhaust to feed it. Hope it goes well as those old 361's are cool to still see running and making power.
 
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