If it were mine I would check the bearings, (replace only if needed) check the bores for total wear, and if at all possible run it as is and put a good timing chain on a small hydraulic like the old 268H Comp cam, and have fun. You can cut the heads maybe .060 and use a steel shim .020 gasket, which should get compression up to the mid 8 range, which is why the short cam will work the best IMHO. With a cam that small, bowl work is all that is needed, along with a good competition valve job to make use of what you have to work with.