Here's another item to consider. For the price of having studs and hardened seats installed in the #17 heads, you can buy a good set of 6x-4 head cores. These already have screw-in studs, hardened seats and 2.11 intake valves. Then, the $ you get from the sale of the #64 heads will go along way to doing a GOOD valve job on the 6x heads. About all they need is some SS valves, guides, and seals. Then just a reasonable cut to get around 90cc chambers.
Then zero deck the block (or no more than .005 in the hole), with SP L2262F + 030 forged pistons and 5140 RPM forged rods, if your budget will allow.
Then, to bring the SCR & DCR up a little, buy Cometic .036 x 4.160 head gaskets, and run a Voodoo 262 cam. This combo should be pump gas friendly and make well over 300hp.