One of the local guys has a demon, I met him because he was going to build his 318 up and the machine shop told him to come talk to me, at the time I had a couple 340's and a 360 sitting in the shed.
He ended up spending just a bit more and built a 360 that made much more power than he could have gotten with a 318 and it ran much better, since with more ci you can use less compression and cam to get more power.
To me a 318 is a great motor for a cruiser, a whiplash cam, clean up the heads, match everything up well, and some pistons that when matched to your heads gets you 10.0-10.5-1. I had one done just that way in a charger, it sounded good and spun the tires like a race car, nothing super fast, but it had to have around 285 hp, I sold that motor, tranny, k frame, and rear end for $3900 which shocked me, but the guy took it for a ride and gave me a deposit to pull it out, wanted it all bad...
ANYWAY, before putting a bunch of money into a 318 I would do some serious thinking and math to see what makes sense, you can score 360's right now...