What you’re thinking of doing in option #1 looks like a decent plan.
However some headers would be the key to the additional power you’re seeking no matter which upgrade you decide to go with.
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1964 Tempest Coupe LS3/4L70E/3.42
1964 Le Mans Convertible 421 HO/TH350/2.56
2002 WS6 Convertible LS1/4L60E/3.23
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