Instead of swapping in a 32V 4.6, you could build a 32V 351 with these heads: http://www.araoengineering.com/
More power and not as big as a modular. They are expensive, though, at $5000+, but can easily make more than 500 hp. Someday I plan on building a 351 with these heads.
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1977 Cobra II, 306ci, Speed Demon 650, Performer RPM Air Gap, ported high swirl heads, 488/.460 Blue Racer Cam, 10:1 Keith Black pistons, Z-Code T-5, 3.40 Trac Lock, SSM Lift Bars
RHC Member #83
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