Good choice, but...
Congrats on your choice of the 348 for your soon-to-be daily driver!
I'll respond to your exhaust question first, then echo what others have said about the 348 block.
We're not sure what your internal engine choices will be (crank, rods, pistons, cam, etal) but if you did develop 350 horses or more, those slim two inchers might not scavenge good enough to take the charges away. Consider the stock 2.5 inchers, which are out there at a price ($400-$500 or so). Or maybe the after market center dumps that are less expensive (such as the Sandersons?). You can always start out with what you have, then upgrade later if you feel that's a limitation.
Regarding the 348 block you have, if it's something that's sentimental to you, consider saving it. Otherwise locate another one. That shouldn't be too hard unless you are in a hurry. For the $500 it might take to fix it you might find two or even three bare 348 blocks that you can use. I've bought complete 348 engines for as little as $100 within the past couple of years. You just have to keep your eyes open and look around
. It helps to spread the word at local car events, etc.
Sounds like you are going to need some bottom end parts, what crank are you going back with? Are you thnking stock stroke, stock rods, stock replacement pistons, or something else?
Last year I built a 348 engine with a few goodies trying to get maybe 400 horses and plans are to use either headers or 2.5 inch cast iron GM exhaust manifolds. I haven't fired her up as yet.
Let us know what your plans are (or how budgetary conscious you are) and we can offer you additional advise. Good luck with the project, they are fun to drive on a daily or even semi-daily basis
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Cheers!
TomK