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I wouldn’t even start. Just too much unless you happen to have a complete donor body.
Recently started a resto on my wife’s beetle, cleaner than that and I’m probably gonna bag it, use it for parts and start on a better one. Unless you have untold time and skills to burn it’ll be really...
Many good ideas here. I’d start with the fundamentals. Get the numbers from the shop. Piston compression distance, deck height (or distance down to pistons at TDC). Head cc. Gasket thickness. Let’s calculate it out first and go from there.
Do the disc brake conversion. The 10” drums suck even with power. The discs are much nicer. Read through other posts here for disc conversion opinions, there are many. Depends how stock you want it to look, do you want to use drum spindles, do you want a sway bar to fit. Also, get what they are...
Anecdotal story for reference...
I had dronemaster 40’s on my 361 and they were purely awful. Swapped them for some dronemaster 50’s and it was better. Then put some resonators in the tailpipes and it was still better. Note that I’m really sensitive to this, drives my tinnitus nuts...