I, like you, went in to my 97 2 door project only wanting to put in a new cam and the required springs.
I, also like you, knew that I also have a, "while I'm there" issue.
I only wanted to spend under $1k.
I ended up spending about $3300.
The machine shop guy (VERY reputable around me), said because of the cam lift, he wouldn't guarantee the machine work to the heads due to the stock ones not having enough meat. So, I traded mine to a guy plus $300 cash for some stock AR heads that the machine shop guy approved.
Then, I pulled the cam to find worn cam bearings. From here, I removed the block and decided since it had 150k on it, I'd just give him the whole block to do what he needed to it. Ended up getting the crank turned 0.010" and the block bored 0.020". I also went with the pistons he recommended to keep me around 9.5 compression.
I also decided since the stock injectors were garbage, I'd put the new mpfi injectors in ($250). Also a new timing chain, oil pump & pan, comp cam full roller rockers and guide plates. Because the rockers were different, I had to get longer pushrods, so I got hardened comp pushrods.
WHILE I WAS THERE, I decided to get an MSD billet distributor and MSD cap, rotor, wires, and coil. The cap ended up being OTB failure, which pissed me off but that's a whole other story.
Since my manifolds were off, I got a set of OBX longtube stainless headers off of ebay that needed some modifying but they work.
Keep in mind, if you're changing a cam, you'll also want to get a tune. Blackbear did mine, and I couldn't be happer. I have the 91 octane tune.
In the end, I wish I'd have went to the machine shop guy for my cam recommendation. I ended up buying the cam, valvesprings, keepers, timing chain from Comp, and the only thing that we "made" work was the cam, even though I told the tech support guy what I had and wanted. I wasn't happy about spending this much money, but I'm almost glad I did. I have a pretty much brand new engine, and I KNOW exactly what was done to it and the condition of everything. I don't beat the **** out of it all the time, but I'm not afraid of anything breaking when I do get on it whenever I want/need to.
Sorry for the novel, but I've been in the situation you're in. If it were me, I'd save the money up and just LS swap it. If I could go back in time, I'd do that. LS engines come stock with more power than the 350 vortec, respond better to mods, and almost always get better fuel mileage (if that concerns you).