There are plenty of stock block cars pushing way over 500 horsepower, its all in the tune as Steve said, keep a safe A/F ratio and keep it dialed in, get a a standalone to further watch whats going on with everything. And dont O ring your heads, go with some cometics for your bore, and some ARP headstuds, you can easily push 600 on a stock block, I can think of at least 8 guys I knwo who are doing this.
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Ryan
1990 Mustang GT (In Process)
1993 LX Coupe (Daily Driver, but just choose not to)
2005 Excursion (Big Pig)