If you plan to just putt-putt around you will probably not have too much trouble from a 226 head on a 254 block using a 254 gasket. Under a hard load it will preignite, and or blow out. The bead around the combustion chamber is to increase sealing pressure at that point and if the bead is hanging out into the chamber, sealing is impaired. It would be even worse with the composition style gaskets with soft material on both sides. Flipping the head over with the chamber side up and setting the gasket on it will show where the problem is. That is how I found it. This is with the H model 226 head . Using the earlier G model with machined recess for the piston would probably not gain anything as you would lose the quench area over the pistons. Anyway, a one point gain in compression would probably net you about 4 percent power gain and a somewhat better percentage gain in mileage. Incidently, most of these heads measure about 1.89 inches from the bottom surface to the tops of the head bolt bosses from the factory. After 50+ years, many of them have already been milled , some quite a bit or several times. Always check valve to head clearance before and after milling.