neo,
i would suggest getting normal engine rebuild parts (ie: cam, bearing, rings, pistons) from you local machine shop. profits are ussually slim and if the is a problem during assy, you have a easier recourse.
you can certainly pick which parts you want to use and get them thru the shop.
the merc stuff will work great. the cam is alittle different grind than a street cam. go to summit racing and lookup parts there. use them as a reference to look up stuff and make a list. give it to the machine shop.
on ebay look up 307 chevy V8 forged pistons to see what comes up. you will need a stronger piston than a cast one. even a hyperuetectic would be good. tom