gumpn2;
This IS the premier site for 3.3L Ford Six hopups.
I have the '79 Fairmont, same engine. As I have done extensive work with mine already, I can give the following advice to you:
1. Without question, get the Falcon Perfomance Handbook. This is the definitive work on these engines and how to hop them up.
2. When you pull the head, measure the "deck height" on that '83 engine, the distance between the top of the piston at it's top-of-stroke. Then, after the engine is bored out, have the machine shop remove at least 50% of that height from the block. This will be about .030" of "block deck", which will greatly improve the engine efficiency (power and gas mileage) after the rebuild. You can remove 100% of this "deck height" if you don't also mill the head.
3. Port the intakes and carve small bowls ("pocket porting") above the intake valves. Deshroud the cylinders around the intake valves (your machine shop will understand this term if they know their stuff - if not, find a different shop).
4. Your engine will have the 7cc "dish" in the piston. Stay with this type on rebuild, unless you're going to turbocharge. If you turbocharge, use the 9cc dished pistons (from the 250 Ford engine) instead to lower the compression ration into the 7.4 range or you'll ruin the rods.
5. Try to find the "flat top" style of the 250 head, or get an Aussie head with the separate intake manifold. This head can give you almost 50 HP more than you have now, with the right carb on top.
6. Get some headers and get rid of the catalytic converter, the EGR system and the emission-controlled spark advance vacuum: use port advance. Stay with the DuraSpark II electronic ignition, but get a Jacobs coil and run spark plugs a step colder than stock (the '79 spark plugs are about right: the '80 and later ones are too hot).
7. Get the exhaust port divider for cylinders 3 & 4 and get it installed, especially if you are using the Ford standard head.
8. Get a hi-perf camshaft: talk with MustangSix or Jack about their experience. A 272 degree is pretty tough to drive with an auto trans, but the 260 degree ones are pretty good.
9. Don't use tires that are real wide: they suck up HP quickly. The result "on the ground" HP of these mods will be a little over 125 RWHP, which is more than most 350 V8 engines deliver, and at half the weight! A 195 tire is plenty of rubber for that much power, and wider ones just lose the power you've gained.
Have a ball. These engines are incredibly forgiving if you do something wrong, so don't worry too much.