I wouldn't buy a crate motor. If the 400 is in reasonably good shape, I'd take the 400 and the $3K and put the 400 in the Z. It will take 1 -1.5K to make/buy the mounts, get it wired and plumbed, fab a driveshaft, and install headers and exhaust. Upgrading the ignition to a HEI or MSD would be a good idea, and you will probably need to upgrade the radiator. Then I would take it to a chassis dyno with a wideband O2 sensor, and get the ignition and carb dialed in. You will likely pick up some power, and you will also find that a 300 hp Z car is pretty much of a terror. Even though that's a mild 400, it's twice the stock hp of your car and will be a ball to drive. Then you can think about what else you want to upgrade, suspension, brakes, interior, or motor, as time and budget permit. It's a slippery slope but a heck of a lot of fun.
Edit: Do some research before you make/buy your mounts. I'm pretty sure the stock 400 damper won't clear the rack with JTR mounts. You might want to go MSA, or change to a smaller damper, which might mean rebalancing if you can't find a small diameter 400 damper.
John