Seeking Advice on Hi-Miles LX

Hi,

Just picked up a '90 LX 5.0 stick hatchback for a decent price, but with 231K miles. I know both previous owners, daily driver, straight sheet metal and perfect interior with some manageable rust issues. Drive train is fine, motor pulls well and passed emissions, no oil use, but runs out of beans at 3500 rpm.

So - the question is how much motor work to do and when. This will be just a play car, and I'm a geezer who is interested in restoring back to basically stock and won't be racing. My plan calls for basics first (fluids, tuneup, hoses, belts, cooling system, brakes, suspension), bodywork and paint, and motor. Right now, I'm thinking of just pulling the heads and getting them rebuilt, but I'm concerned that with that many miles, l'll need to do at least rings and bearings as well... and with heads off, probably should do cam, timing gear... Sinking a couple grand in isn't a problem but I probably don't need to spend $4K on a crate motor either.

Appreciate any thoughts. I know this gen 302 has a great block and pistons, but still seems like a lot of miles...

Thanks!
Chris

Thanks for the great replies! I figure I'm kidding myself if I think I can just do the top end and not have more to do, given the mileage. Funny, it's probably been this way for a while... I bought it from my buddy, and when I test drove it with him, I punched it... and he freaked that I took it over 3000 rpm. I'll bet he's been tooling around forever and not even pushing it enough to notice the valve float.

Anyways, I'm planning to do everything but the machine work myself (although paint and body is my usual thing, not full motor rebuilds). Hopefully I'm not being overconfident...

Chris