I don't see 12's as much of an obstacle for a 302 or a 351 with a carb and the right setup. But I'd definately look into an EFI conversion.
If you're dead set on staying carbed I'd say get a 351 block bored, balanced, and blueprinted with all the extras, a set of Twisted Wedge heads, Victor intake, 750cfm carb, custom grind cam for mid to high end power, roller rockers, a set of 1 3/4 long tubes, full 3" exhaust, 50 shot of NO2, etc. Then sink some money into the suspension and you should be able to hit 12's with a set of slicks no problem (maybe even 11's).
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Too much to list. Best ET on the car so far with stock 2.73 gears - 13.73@102mph
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