With .060 over you should be fine. I run the Duntov 12/18 solid lifter cam in these engines if it's going in front of an automatic trans or the Duntov 30/30 solid cam if it's in front of a gear box. I'm also talking street engine.

You will hear a lot of people say " with today's cam technology" there are better choices. This is true for the 350 cu.in. and up but with small cu.in engines you really don't need a lot of cam to make em scream. It's more important to realize all your power comes after 4000 rpm's with these engines. Duration is more important. The spec's on the Duntov 30/30 seems to fit what your looking for and always run solid lifters if you can.

So with that said, a 2.73 rear gear is not going to cut it. 3.73 is the smallest I would attempt. RPM'S is the key to power in a 327.

If you have to stay with a factory iron head, a 461 or 462 casting would be best but if your 896 heads have 60 cc chambers you will be fine with those.