Help with the motor.

Hi folks, as I have been away for awhile I am getting my car back into shape to run on a 1/4 mile clay track out West, ( CA, and NV). I have secured a good running junk yard 318 and I wanted your opinions on if you thought I was on the right track:
TRACK its a stick paperclip with a bank on 1 and 2 and slight on 3 and 4.
ENGINE: 11970 318 thats got 70K on it and has been sitting in a military sealed container. not even a spider web on it! I pulled the spark plugs and sprayed Marvelous Mystery Oil inside the cylinders and let them sit ( the motors was NOT frozen).
MY PLAN: To remove the top end. I have a set of good 1978 360 heads and I'd like to have them shaved as much as possible to raise the compression. I'll be running E85 fuel and I am wondering how far I can shave them before I will have rocker arm issues? I am running a new 488 lift Purple Shaft cam and lifters and must run stock stamped rockers etc.
I will be running 4412 unmodified, and stock exhaust. Will the 95 Durango V8 cast exhaust manifolds fit on a M,J, body (Aspen)? If not what cast exhaust should I get?
This is a 76 Aspen RT that was set up for asphalt and now converting to dirt.
I have a 3 speed manual, should I consider that over a 904 auto? I will be switching over to a Ford 9" with 6.0 gear and about 27" tall tires (245X60x15 DOT Coopers).
Do you like my plan for my Hobby stock engine? What else should I doto this little 318? I am on an extreme low budget and am racing with basically left over parts.
Thanks for your input.
Author: racerdave