Butch:Taking your questions in order: Many don't agree, but I feel the C head intake valve is big enough for street use. The exhaust side can benefit from a larger valve and opening up of the exhaust ports. Remove most of the "hump" around the valve guide without shortening the guide itself. Clean up both bowls, think in terms of the air flow direction and remove ledges and ridges that can obstruct flow. Do not polish the intake ports, leave them in as-cast condition to help prevent fuel separation from the air stream. Do not grind away the short side radius on either port. The 113 heads won't particularly hurt you, but if you don't already have them, it would be hard to justify the expense of buying a pair for your application. You can probably mill about .030 without milling the intake surface, mostly because the engine was designed for steel shim gaskets and you will be using composition gaskets. The cam would be a good street cam to get a fairly heavy car moving quickly from the light. I'm sure you know you need to take off in LO for maximum acceleration, if you leave the shifter in DR you will probably be taking off in 2nd gear. You probably have a 3.22 rear gear, if you can find a stick shift 3.78 gear it will help a lot, and if the stick can run highway speeds with the 3.78 the automatic can. However, if you are used to a modern car with an OD transmission, it will sound to you like it's running in 2nd.
John