Engine Name: 350 LM1
Horsepower: 249 HP @ 5,000 RPM
Torque: 304 Ft/Lbs @ 3,500 RPM
Compression Ratio: 8.50 to 1
Block: 4 – Bolt, 2 Piece Rear Seal, 4.000” Bore
Crankshaft: Cast Nodular 3.480” Stroke
Heads: Cast Iron, 76cc
Valves: 1.940” / 1.500”
Camshaft lift: 0.390” / 0.410” Hydraulic
Duration @ 0.050”: 195° / 202°
249hp leaves much to be desired out of a 350. 304 ft/lbs is pretty weak too. You definitely want to get smaller combustion chambers to raise the compression probably 1 point (9.5:1) on an iron head. It's generally accepted that you can run 1 more point of compression with an aluminum head. You have a lot to gain starting off with a 76cc head. You will have to do the homework as far as how much which combustion chamber will do what unless someone else is kind enough to look it up for you.
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As far as the rocker arms, the 1.5 and 1.6 is referring to the ratio that the rocker arm increases the lift of the cam. Say the cam has .200 lift, a 1.5:1 rocker arm will make the lift .300 at the valve. The 1.6:1 will give you .320
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My friend has the same engine and I have always tried to get him to turbocharge it or supercharge it because the compression is there and turbocharging it on your own would be somewhat comparable (pricewise) to new aluminum heads and cam. Just a thought.
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Regardless, almost any modification will give you a lopey idle which is nothing to be ashamed of.