Run the stock block at that power level. It's been done a million times. Just keep the timing and AFR conservative, the power below 500 rwhp (manual tranny), and the RPM limit at less than 6, and you're in good shape.
My recommendation on a budget:
- Aluminum heads (you pick)
- GT40/cobra/explorer intake (stay away from chinese junk):
- Stock or F-cam (go for driveability with this one if you intend to go with my forced induction recommendation):
- Forced induction: Simplicity = centrifugal blower (paxton/vortech).... You will have no problem getting 400rwhp. For the killer "diesel" torque you referenced go turbo! I'd personally save my $ and stick with the proven Hellion kit vs. the cheap On3 kit that people have had problems with (though some will defend it vehemently, On3 has had significant issues in the past and uses cheaper supporting parts). Any turbo 60mm or more should be plenty to split the stock block, and if you keep it around there, it will spool VERY fast. For the $, I love the master power T70. At around $550, you've got a turbo that will produce 600+rwhp, which gives you room if you go to a more solid foundation. Opting for an electronic boost controller is well worth it, IMO.
- Supporting bolt-ons: Budget $500-700 for a custom tune, or a chip you can tune yourself (Tweecer RT....whatever works for you AND, this is key, a wideband O2 sensor), fuel pump (255 LPH pump or more + depending on how hard you push, a Kenne-Bell boost-a-pump, 42lbs/hr injectors, a boost-sensitive AFPR)
- Built transmission (G-force T5, TKO (even a 500 will be plenty), T56, or a built auto)
- suspension/gear/tire (I know you just asked about a motor, but these points have to be addressed if you want to put that motor to appropriate use.)
- subframes if you don't already have them (or you will twist the hell out of your car's uni-body if you haven't already).
As an alternative to building your own motor, you can also consider starting with an Explorer 5.0 as they come with Iron GT40s, and a GT40 intake to begin with.
The combo above would be an absolute blast to drive, and guys in the 500rwhp range typically trap in the mid-high 120s in the 1/4 - enough to outrun just about any new non-exotic production car. You'll be in the same ballpark as a new GTR or Z06 from a roll. Don't get greedy, be careful tuning, and this combo will last a long time. IMO, this is an easy and affordable combo. If you end up blowing the motor up, you're out a couple hundred and some labor for another shortblock, which you can find on craigslist all day long. That's pretty affordable, and will keep you from investing thousands in a built aftermarket block.
Chris