Can a 1985 305 block be bored out to a 327 and will the heads from a 327 bolt on and give me a lot more HP with a big cam?

It is not possible to bore a 305 out to 327ci. You could by a stroker kit, bore your block .040 over and have 336ci. Use a good set of heads (Port and Polish) with 1.6 roller rockers, single plan intake (port and polish intake runners) with a spacer and Holley 650 carb, a Comp XE 268 cam or equal (advace it for an extra 10-20 HP). Headers 2.5 exhaust an upgraded ignition system. Try for a 9.1-9.8 compretion ratio. With this combo I promise that you will get at 325-425 HP depending on what heads you use. Convert it all to a Roller system and gain about another 20 HP. Make sure that everything in the bottom end is new with complete balancing. 327 heads on 305 block: Port, Polish, 3 or 5 angle valve Job (valves must be 1.94 on intake side) completely rebuild them and use .550 springs. Use small dome pistons matched to the heads cumbustion chamber cc's. If you use these heads and all the above mention parts, you should have no less than 380 HP naturally aspirated.