10~10.5:1 compression would be a good starting point. That should run good at altitude.
Heads could be argued forever. I would recommend a 2.02/1.60 head. Those huge valves probably have flow issues when run on a standard 4” bore engine. Now if you were running an aftermarket block with 4.125” bore then they wouldn’t shroud the valves so much.
500 HP is your only goal? Do you want any low end power, street driving, economy? An engine that makes 500 HP is fairly easy with a nice big cam and carb. The ability to enjoy it anyplace other then high RPM on the dragstrip is another issue.
well yes I do want a decent all around powerband...with good top end...what shoudl i expect fuel economy wise with a 408?