Well I'm no expert on the matter, but it seems to me that trying to produce a whole lot of HP with a smaller engine is most likely going to wear it out a lot quick than a larger engine. I would imagine it would be cheaper to go with a larger engine, maybe a 351 or a 347 and have it supercharged, then to really have to soup up a smaller block. I think the rule of thumb for superchargers is roughly 10hp per 1 pound of boost. The added displacement from a larger engine would probably make up that horsepower easier than what it would take for the extra psi in a smaller one. Like I said, no expert, but that's what makes sense to me.
How small of a block were you figuring? 500hp wouldn't be too easy a number to make even from a 351 (running roughly 12psi, you would still need 380hp from the motor)
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