Just a suggestion...
For comparable money, you could run a fairly mild LS engine of some sort (around 400hp) and throw on a supercharger, or electronically boost controlled turbo setup. Turbo kits are still pretty expensive, but the potential is amazing. If your budget needs to remain realistic, there are some fairly economical supercharger kits available. The upshot to this decision would be that if you equipped your supercharger with a quick change pulley system, you could extract a few more pounds of boost for track use or use with higher octane fuel (whether it's race gas or e-85) and with a ten minute pulley swap you'd be back to having very streetable engine. I was going to use a Magnacharger on my '99 TA before I got rid of it. I raced a guy who had one and I lost MISERABLY, easily 1.5/2 seconds in a quarter mile. I talked to him for a few minutes after my beating and he was very pleased with the manners and reliability of the setup. There are other centrifugal supercharger setups worth considering as well. Just a thought.
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Great success rarely comes without the risk of great failure. '81 Camaro, 350, Edelbrock 750, headers, 4 speed, '97 Buick Park Ave Ultra, Supercharged 3.8L V6
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