For the money is sounds like a great buy.
X heads -in good shape-sell for $400+ on E-bay, engine blocks go for about that much too, crank is a good $150 or more, those rocker arms not sure but $$$. Plus since its right by you no shipping charges.
I go for it.
But if it turns out too good to be true, don't write off your 318 motor.
I just swap some MP casting # 4772576-like the 308 heads but no smog air holes in the exhaust ports and 2.02 valves.
Man, that little motor woke up! I have 3.91 gears plus a low 2.74 first gear in my auto trans 904-with only a 1800 stall conv. Using a holley street dominator intake and a 750 dp carb. It takes right off and zips right up to 6200 rpms. Sounds better and feels better. I did have the heads milled .030 or to 63cc but still, my compression can't be more than 9-1 and I am burning 87 gas. A msd 7 al box and hvc is firing the spark plugs--I am sure its helping to burn all the fuel thoses heads and carb is ramming in.
So grap the 340 if its true or find some good heads for your 318, IMO.