PANAVIA -- Why don't you get quotes for a completed budget short block 390 or 428 from Barry, Keith, et. al. and then you do the rest? If you're not comfortable with that, move it up to a long block. I personally prefer a solid cam, but a hydraulic is safer and easier to break in. Don't go with a "budget FE builder," only go with a recognized FE expert. Right now the economic times might just play in your favor if you find the right builder who will ease back a bit on his labor rates and build it for durability as opposed to ridiculous horsepower. Just keep in mind the FE mantra:
Some things are better the second time around; rebuilding your FE ain't one of them. 