Others need to comment, and keep me honest so you can get a cost effective hop-up. The democratic process for car hop-ups will give you something to draw on!
Firstly, set your budget level to one which will allow you to complete what you hope for. Remember, the stats for bright young bucks sucessfully reworking an old car are against you, brother. 12 months ago my 23 year old protege dumped is 2V 250 powered Ford Cortina six off the motorway because he got disheartened. That car was a weapon with C4 auto, extractors, 225/50 X14's and 3.7:1 gears which made it scream like a banshee!
Secondly, In Australia and New Zealand, 1970 Falcons are da bomb. They kick butt with their square syling. Aussie Falcon GT's got 4V HO 351 Cleveland V8's which did 14.4 second quarters and 140 mph top speeds, and 1970 Mach 1-style "Shakers" sticking outa the hood. Bitchin'. Blueprinted engines did 350 bhp net on dynos. They are a true classic that most Ford freaks lust after. Sorta like what a 271HP 65 Mustang is today.
With a 200 six, however, your not gonna set the world on fire! When your young, you look at starting with what you've got, and then adding to it to get the performance you'd like. In practice, this may be a bad idea. There is not a cubic inch substitute, unless you use nitrous, turbos, multiple Webers or a 4/71 blower. You need a solid base that won't let you down. I'd suggest a few things that I'd do if I was in the States and 17. I'll work on the basis that you want to use the stock 200 base.
My recipe for success with a 200 is this:
1. Do a static leak down test. If it fails the 80% compression retention, find a newer 200 from a later Fairmont. Otherwise, your going to have to rebuild your engine...not cheap, but it'll let you down after you hit it with what I propose if the engines not primo. I'll bet you'll need a rebuild. If you are worried about the cost, then you'll never get the performance you need. 200cubes won't cut it unless it pulls revs!
For the rebuild, go for stock 200 rods with Chevy big block ARP or similar rod bolts. Regrind the crank 10/10 thou, and fit a heavy duty harmonic balancer (front pulley). Fit a 30 thou over flat-top, non-forged piston which was originaly bound for a 250 is the best option. It needs to cope with a piston speed, and compression much higher than the original did. In Oz, Duralite pistons are used. Fit rings to race spec, with clearances at the upper end of what the ring maker recomends. Block can be decked, but don't go for less than a 25 thou below deck piston space. This little rager will like to rev. Find a good quality true-roller cloyes style timing gear set. Very expensive, but very good. Find an uprated new oil pump. Sump needs to be enlarged to carry an extra liter of sump capacity, by welding in pro-stock style ears in the flanks. A "windage" tray should be bent up to clear the free running envelope that the crank spins in by 60 thou. Over fill the sump an additional half a liter.
2. Rip off the head, and put a Holley 2300 350 cfm carb from an after market shop or swap meet on it. Use an adaptor. Make sure the carby linkage has the correct linkage, which allows any auto kickdown rod to work the way Ford intended. If you can offord it, and it can be done with a flow bench, have the head gas flowed. Integral intake ports limit the power, but unless someone from Agentina or Aussie sends you a 2V head, don't worry about it. Enlarge the valves to 1.75 inlet and whatever exhast valves you fancy. The replacement valves must be single grove, and locked in place if multi grove. Cutting the keepers to ensure they don't but up is important. Since your running unleaded, a post 1974 head is best, as they have induction hardened valve seats. Ask the head shop to rebuild the head to suit a 450 lift cam with 280 degrees duration...no more. Go for expensive bronze valve inserts, or K-line the stock ones. The shop has to allow for the right seals and clearances. Valve gear should be upgraded to either new old stock (dime pincher) or some other after market items. The rtainers and sled fulcrums need to be better quality than stock. Don't go for roller rockers unless you're rich! Find a hydraulic cam which has around 215 degrees or less duration at 50 thou valve lift, and around 280 dgrees duration at std running clearance. Lift should be around 450 thou. Spring bind cannot occur at full lift...60 thou clearance should exist between each coil at maxixmum lift. Use any name brand hydraulic lifters.
Plane the head for a 10:1 or greater compression ratio. Theres a web site link for calculating this. Go for the most compression you can get. Forget what any body says.
3. Fit two 15 thou brass jets in to the air horn of the Holley carb. This is to supply my trademark Anti Detonation Injection system ex David Vizard practice. Use an Edlebrock or Spearco or even a stock washer bottle for carrying the fluid, which is a 49%/49% mix of methanol and water. Add 2% little methyl ethal ketone or acetone. The vessal needs to be scavanged by a 45 psi electric motor, which is set up for action at wide open throttle by a nitrous oxide style leaf switch. This allows you to use any pump grade gas, without holeing the pistons or detonating. This system MUST WORK ANY TIME ITS CALLED FOR. It is the most critical part of the modification to this vehicle. Check the condition of the plastic on a regular basis, or have a sheet metal worker make one out of stainless steel.
4. Use a quality electronic ignition system which fits your block. Set the advance on a chassis dyno at a level below where detonation sets in with the ADI system operating. Part throttle response should be excellent.
5. Headers are needed which link to a big single pipe of 2.25-2.375 inch diameter.
6. Go for a recalibrated, rebuilt C4 auto trans with a 2800 rpm stall ratio. On the street, a good auto will be quick on the uptake when ricres loose a gear. Grab a Granada diff and find a ratio of around 3.73:1 Run a set of 245/50 by 15 tires on 15 X 7 Cragar SST's for the front, 265/50 and 15 X 8 or similar at the back. Fit V8 1968 to 1974 Fairlane/Torino/Mustang discs if you can get them. The front ends were similar, and quite a lot interchanges.
This set up should give the following in a 3000 pound Falcon:-
Horsepower, net, of over 185 at 5700 rpm or so. Torque of 175 ft-lbs at about 4000 rpm. Red line about 6300 rpm
Mph per 1000 rpm of 19.8 ; Top speed with 0.48 drag co-efficient and 2.15 square meter frontal area, gives a 118 mph at 6000 rpm. Gearing is set up to cruise the pike at above the stall speed at 55 mph. Maximum trap speed for the 16 second quarters are reached in second gear at the red line...about 6300 rpm or so.
That's it. No 2V head, no 250. This is all you can expect. A good Honda Integra R or something will drag it off, but it'll sure keep them honest
The most important thing to do is what you've already done: You found this site! 
