If it's a rust bucket, then start with the body first. It's only going to get worse if it sits like that.

This should give you plenty of time to eventually track down a traditional Poncho V8. The best deals come when you're not in a hurry. As for whether the Poncho 350 is worthy, most people shy away from the 350s and go right to the 400s because the 400s are as easy to find. However, given your location, that might not hold true. So I wouldn't discount a Pontiac 350. They can do suprising well with some mods. ACE at PPR has a true Pontiac 383 kit (it's NOT a Chevy engine). http://www.highperformancepontiac.com/tech/hppp_0712_small_bore_pontiac_engine_build/index.html