As far as the engine choice: How much power do you want to make. With a 302 you can eclipse 350hp N/A and remain streetable. With any of the stroker kits for the 302 you can close in on 400+hp N/A. If you want to use forced induction, you can press over 500hp, although I don't recommend it if you want the block to survive.
I was completely unaware of a 351C being offered as a fuelie? I thought the 351W was the only one out there as a fuel injected engine?
The standard 351W varient is stable to about 650hp, I believe. You could always get a sportsman block if you wanted more.
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