Here is a couple of points of interest you may want to consider while building your motor.
1200-1300 hp with a 540 using an 8/71 will be hard to do with that low of compression unless you have a super nice hi helix 8-71 blower. You could use some N2O to help get there with the above combination using race gas. Done this before with a 355 small block running a 6/71, made about 1050 hp which was good for 5.00 in the 1/8th.
If you want to run injection and alcohol, you will need to bump up the compression to at least 12- 12.5 still using the 8-71. As far as heads go, if weight is not an issue, some iron square port heads will work fine, alum heads will be better if some N2O is used. Stick some 2.250 intake valves and some 1.9 - 1.94 for the exhaust in the heads. A pair of Dart 360s would be a good head to run. Hope this helps a little! Let me know what kind of specs are on your cam. Later