Mild build up SBC 350

Edelbrock heads and CAM seem to be a good deal. [/color][/b]
Question: Do I go with the 50 State Legal heads? Or the E-street series? Should I maintain EGR, i.e. will that help increase mileage and smooth idle?

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Check with your local laws on emissions so you can know what route you want to take, but IMO im about the power so you should do more research on the heads you want to see what is better for your application, idle quality is more based on cam selection and your tuning skills

2. I am sitting at 76cc heads and 8.5:1 compression. I am Thinking of using 70cc heads. That should be around 9:1 compression. I think...
Question: Can I still run 87 Octane? if so what do I have to look out for to avoid detonation?

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Yes you're still way in the green on 87

3. Comp Cams has nice Ultra Gold rockers at stock ratios for much more reasonable price than Edelbrock, AND lifetime warranty.
Question: Will those mate up nice on the Edelbrock heads and increase horsepower? or should I stick with Stock rockers? Is 1.5 or 1.6 the correct stock ratio that the Edelbrock head require?

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Yes, stock ratio is 1.5 but you should step up to the 1.6 and They will free up some ponies

4. go with a matched Double Roller timing chain
Question, will that fit on my Hench En Mexico block without modification?

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Yes most 350 are made in Mexico anyway

Answers to your questions:
1. Depends on your area's emissions regulations. EGR is fine and can "trick" your engine into "thinking" it is running richer than it is. This will reduce detonation, cylinder temperature and (in theory) fuel consumption. The Performer cam is a good choice for a mild driver.
2. Yes.
3. Roller rockers are fine. The stock ratio is 1.5. If you are building a combination from scratch, it makes more sense to use a larger cam with 1.5 rocker than to use a smaller cam with 1.6 rockers. Using 1.6 rockers is fine on an engine with a cam that is too small for everything else (big heads, intake and carb but stock cam). They add undue stress to your valve-train.
4. Yes. Roller rill fit.
I ran a stock short block with aftermarket heads that had flow numbers similar to the E-Streets along with a Performer cam and intake. With a Quadrajet it got about 16-17mpg on the freeway and ran very smooth. I doubt a 1406 would do any better. My vehicle weighed 3200# and had 3.08 gears.

Looks Good Man! Keep Up The Good Work!

the headers should still work. When you painted the heads did you cover the holes to the threads?

Lookin' good, Anthony.

Just a thought. Is your headers still connected to the pipes? If so, you may want to unbolt them from the flanges and try bolting them to the block that way.