with that $2500 budget, I'd do a blueprint rebuild of the short block, cut the decks to get it at zero deck for better compression. get a decent cam matched to your compression, maybe spend a few bucks on some head work, or buy a set of used heads already done, a good carb, intake, and headers, and you should be there!

Don't skimp on the foundation though...get good machine work done, spend most of your money there. then scrimp and save and shop for deals on used parts to finish the rest of it.