Maybe the thing was oil starved at one point, being a former hydraulic car?
That or as mentioned the piston to wall clearance was way too tight and when things warmed up (or cooled down), they rubbed. 307 is a fine motor... but so is a mild 350 olds... all accessories fit. idk florida emissions laws, best to check up on there first. A 307 can be built like any other engine, but automatically with the 350 that extra 50 cubic inches (more or less when bored) gives you that extra little bit of oomph.
That or as mentioned the piston to wall clearance was way too tight and when things warmed up (or cooled down), they rubbed. 307 is a fine motor... but so is a mild 350 olds... all accessories fit. idk florida emissions laws, best to check up on there first. A 307 can be built like any other engine, but automatically with the 350 that extra 50 cubic inches (more or less when bored) gives you that extra little bit of oomph.