later on down the road if something would happen and my engine would need replaced, what should i go with that would give me a little more power and will not be a killer on my gas mileage. I was thinking something along the lines of a 327 or a mild 350 but i am not sure i want to go any bigger what do you think?

There are cheaper sb 350 crate motors out there, but I'd go with this one:

ZZ4 (http://www.paceparts.com/product.asp?0=239&1=241&3=1212)

:cool:

You could always pick up a later LT1 and drop it in. The only catch is that the later version may need to have a frame notch done on the passenger side. it is a 6 inch long notch that is 1/2 inch wide from the front on the frame. there is a company out fo lousianna that makes a mechanical fan drive conversion for this setup. you can use a 87 camino tank for the fuel injection system and there is acompany in texas that will rework a harness for you or setup the harness you get with the engine.
I highly recomend this conversion it tales a bit of time and cash but it is well worth effort. i have done this setup in my 72 Camino and this generation it drops into the stock location with no trouble. I now have a 320 horse 350 that idles smooth as butter runs in excess of 135 mph without breaking a sweat and gets 33 MPG hwy and 27 city. I also got a 6 speed in the mix which makes it a riot to drive. The auto may get a little less mpg but not that much

You only have to notch the frame for an LT1 if you use a Camaro or Impala accessory bracket. This puts the AC compressor low and on the passenger side. If you use a Corvette bracket or aftermarket setup then you do not have to cut the frame. The mechanical fans are up to you. I'm running a set of 98 Camaro electric fans in mine. The harness does not need a lot of reworking to run. I've mainly removed excess wires from my harness and custom programming of the computer eliminated the need for VATS moduels etc.

I recomend you buy a GM Crate motor. ZZ4 or a RmaJet 350 for Small blocks.

You could get bold and drop in a 502 RamJet!

I would normally suggest you get a newer block and build it yourself however, having some bad problems with some machine shops that are suppose to be good at building HP engines and machine work, I would just pick up a Crate Short block and build from there. GMPP warrents their work.

Just my two cents worth. :)