There are lots of options to choose from,but,IMO,if you want to retain the stock 7.5 rearend and/or transmission,you will want to keep the power level relatively low.
Maybe something along the lines of this ATK crate engine;
Find CHEVROLET ATK High Performance Engines HP291PC ATK High Performance GM 350 325 HP Stage 3 Long Block Crate Engines and get Free Shipping on Orders Over $99 at Summit Racing! Give new life to your ride with ATK High Performance GM 350 325 hp Stage 3 long block crate engines. They are based...
www.summitracing.com
325 HP would be a nice upgrade from the 305.
A lot will depend on how you are going to drive it.
I can tell you from my personal experience that the 7.5 will not stand up to a lot of abuse.
Yes,you can put a lot of money and work into one and they may last longer,but you could probably put a 9 inch in for not a whole lot of difference in $$$$.
Want a bit more power,there a lots of 383 sbc crates to choose from,like this one;
Find CHEVROLET ATK High Performance Engines HP36C ATK High Performance GM 383 Stroker 435 HP Stage 3 Long Block Crate Engines and get Free Shipping on Orders Over $99 at Summit Racing! Give your ride the extra twist only a stroker can deliver with ATK High Performance GM 383 Stroker 423 hp Stage...
www.summitracing.com
If you really feel brave,big block's will fit with a bit of work;
Find CHEVROLET ATK High Performance Engines HP42C ATK High Performance GM 540 660 HP Stage 3 Long Block Crate Engines and get Free Shipping on Orders Over $99 at Summit Racing! Smash the competition or terrorize the street with ATK High Performance GM 540 660 hp Stage 3 long block crate engines...
www.summitracing.com
Up to you..
Guy