Chuck, does the 400 short block for $1000 less include heads? Water pump? Alternator (with brackets)? exhuast manifolds? Starter? Transmission? Etc. These are all items that may have to be bought so the $1000 savings will be long gone. If all are included, what heads are they? Low compression smog heads? If so you may see a HP drop from your 326. See http://www.wallaceracing.com/head1.htm