The rods should be good for your application but looking at your build it is very mild and all the stock components should be fine.
Both the cams you are looking at are mild and should work. I would not mill the head, I would pick up a cheap set of closed chamer heads instead like some 516's.
These are plentiful and cheap. I would run the .022" steel shim gaskets to keep the compression up and just surface the heads and block to make them true.